Electric vehicle maker Ola Electric has received official approval from market regulator Securities Exchange Board of India (SEBI) on June 20th for its initial public offering wherein the firm is looking to raise Rs 7,250 crore.
According to Sebi's website, the IPO for a fresh issue of Rs 5,500 crore and Offer for Sale (OFS) of Rs 1,750 crore has been approved, and the observation letter was issued on June 10th.
Also Read: Ola Electric gets Sebi approval for Rs 7,250-crore IPO
On May 25, Moneycontrol was the first to report that Ola Electric has roped in Kotak Mahindra Capital and Goldman Sachs for an IPO in early 2024.Ola Electric’s founder Bhavish Aggarwal will be selling 47.3 million shares.
The firm’s initial investors — AlphaWave, Alpine, DIG Investment, Matrix, and others will also be selling 47.89 million shares via the OFS.
As per the DRHP, Ola Electric will utilise the funds for capex, repaying debt, and research and development (R&D). The firm will use around Rs 1,226 crore for capex, and Rs 800 crore to repay debt. It will spend the most, about Rs 1,600 crore, on R&D, and Rs 350 crore on inorganic growth.
Sebi's nod comes at a time when the firm's ride-hailing Ola Cabs has initiated preliminary discussions with investment banks for a potential launch of an initial public offer (IPO).
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