Ola Electric converts to public company ahead of IPO filing

Moneycontrol had previously reported that Ola Electric has roped in Kotak Mahindra Capital and Goldman Sachs for an initial public offering (IPO) in early 2024. (Representative Image)

Ola Electric has transformed itself into a public company as a crucial step in preparation for its Initial Public Offering (IPO). This significant milestone involved corporate restructuring, and has led to the change in the company's name from Ola Electric Mobility Private Limited to Ola Electric Mobility Limited.

The conversion of a private limited company to a public company is a requisite process for companies intending to be listed on the stock exchange.

A certificate of incorporation issued by the Ministry of Corporate Affairs on November 17, following the conversion to a public company, states: "I hereby certify that OLA ELECTRIC MOBILITY PRIVATE LIMITED which was originally incorporated on THIRD day of FEBRUARY TWO THOUSAND SEVENTEEN under Companies Act, 1956 as OLA ELECTRIC MOBILITY PRIVATE LIMITED and upon an intimation made for conversion into public company under Section 18 of the Companies Act, 2013; and approval of Central Government signified in writing having been accorded thereto by the ROC Bangalore vide SRN AA6069193 dated 10/11/2023 the name of the said company is this day changed to OLA ELECTRIC MOBILITY LIMITED."

According to an earlier report, Ola Electric intends to submit regulatory documents for its IPO of up to $700 million by the end of October.

The IPO is expected to provide Ola Electric with the necessary capital to accelerate its expansion plans, invest in technology, and bolster its position in the competitive electric mobility sector.

Moneycontrol had previously reported that Ola Electric has roped in Kotak Mahindra Capital and Goldman Sachs for an IPO in early 2024. At the time, sources said the planned IPO will be a combination of primary and secondary share offerings.

Recently, the electric vehicle manufacturing major announced that it has closed a Rs 3,200 crore (approximately $380 million) funding round with a mix of debt and equity from Temasek-led prominent investors and debt from the State Bank of India (SBI).  The funds raised will be used to expand Ola's EV business and to set up India's first lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu.

Ola Electric in February 2023 expanded its scooter portfolio to five products.

It unveiled a slew of electric vehicle (EV) two-wheelers at its 'End of ICE Age Event, Part I', on the eve of its Consumer Day, on August 15.

The company, India’s market leader in e-scooters with a 30 percent share, was founded by Bhavish Aggarwal and has seen its popularity surge as the country promotes the use of electric cars and scooters. Ola Electric, which has a manufacturing capacity of 1 million electric vehicles per annum in Krishnagiri, Tamilnadu, is planning to double its capacity. The firm is planning to make motorcycles within the same facility and has set up a separate battery manufacturing unit which is in the process of making India's first lithium-ion cells.

Ola Electric recorded an operating loss of $136 million on revenue of $335 million in the fiscal year ending March 2023, Reuters had reported.