Ola chief executive officer Bhavish Aggarwal said the company wants public investors to be part of Ola Electric’s journey, but a concrete date for the unit’s initial public offering (IPO) can’t be provided yet as there is a Securities and Exchange Board of India’s (Sebi) process to follow.
“Sebi’s observation came in two weeks ago. There is still a bunch of steps to go through in the next few weeks and as we go through them, we are keen to get on to the market… but a firm date can’t be given because there is a Sebi process to follow,” Aggarwal said in a podcast with news agency ANI.
Ola Electric had filed its draft red herring prospectus (DRHP) with the markets regulator on December 22. Moneycontrol, on June 11, had reported that the electric vehicle maker had received Sebi's clearance for its IPO. The company is looking to raise Rs 7,250 crore through the IPO.
Aggarwal hinted that the carmaker wants to follow in the footstep of Maruti Suzuki.
“People remember how Maruti grew after its IPO… so we wanted to bring that for the public investors to be part of our journey if they wish to.
Also read: Ola Electric is said to face investor pushback on IPO valuation
He also pointed out that Ola Electric’s IPO is coming very early compared to other companies.
“We have filed for IPO very early in our journey… usually firms file after 7-8 years. But we filed because we grew very aggressively and India’s EV penetration grew with us in the last 2-3 years.
Earlier in May, Moneycontrol was the first to report that Kotak Mahindra Capital and Goldman Sachs have been roped in by Ola Electric for an IPO in 2024.
Also read: E2W sales remain flat in Q1FY25 despite new offerings by Ola, TVS, Bajaj Auto
Ola Electric's IPO has a fresh issue of Rs 5,500 crore and an offer for sale (OFS) of Rs 1,750 crore totalling Rs 7,250 crore. Existing shareholders were said to sell 95.19 million shares in the OFS, as per the firm's DRHP, while Aggarwal will be selling 47.3 million shares.
Meanwhile, the Ola founder, in the podcast, said gig workers should be provided with social security net and insurance. He said Central and state governments can collaborate with private firms to offer social security and make India a 'trendsetter' in this segment.
According to a Niti Aayog report, the country has a workforce of 7.7 million gig workers as of 2021, which is likely to grow to 23.5 million by 2030.
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