Ola Electric files DRHP, plans to invest Rs 1,226 crore for capex

Ola Electric Mobility files IPO papers with SEBI

Homegrown electric vehicle manufacturer Ola Electric has filed its Draft Red Herring Paper (DRHP) with the markets regulator Securities Exchange Board of India (SEBI) on December 22 wherein it has said that the firm will utilise Rs 1,226 crore towards capital expenses (Capex) and Rs 800 crore towards repaying the debt.

The initial public offering (IPO) of the firm comprises a fresh issue aggregating up to Rs 5,500 crore and an offer for the sale of up to  95.19 million equity shares by selling shareholders.

Also Read: Ola Electric files DRHP with Sebi; first ever by an Indian EV firm

The total size of the IPO is Rs 7,250 crore including OFS.

The EV maker will also utilise some of the net proceeds of up to Rs 1,600 crore towards investment into Research and Development, and Rs 350 crore towards inorganic growth initiatives. The rest of the fundraise will be used for general corporate expenditure, as per the DRHP document.

The company is also planning to raise Rs 1,100 crore via pre-IPO placement.

"If the Pre-IPO Placement is undertaken, the Fresh Issue size will be reduced to the extent of such Pre-IPO Placement, subject to the Offer complying with Rules," the firm said in its DRHP filing.

Ola Electric’s founder Bhavish Aggarwal will also sell shares up to 47.3 million shares and investors AlphaWave, Alpine, DIG Investment, Matrix and others investors to also participate.

Moneycontrol was the first to report that Ola Electric has roped in Kotak Mahindra Capital and Goldman Sachs for an IPO in early 2024.

Sources said that the company is looking to raise at a valuation of $7 -$8 billion.

Founded in 2015 by Bhavish Aggarwal, Ola Electric continues to dominate the EV two-wheeler market. The firm has also built a giga factory in Krishnagiri, Tamil Nadu. It further plans to expand Ola's EV business and set up India's first lithium-ion cell manufacturing facility in Tamil Nadu.

Read More: Ola Electric taps Kotak, Goldman Sachs for IPO, likely to hit market in early 2024

Ola Electric's consolidated revenue stood at Rs 2,782 crore, up nearly 510 percent, in FY23, but its net loss widened to Rs 1,472 crore, double of Rs 784 crore that it reported in FY22.

On December 6, Ola Electric, in a note to investors and the bankers said that it is targeting an EBITDA profitability of Rs 803 crore in FY25. The firm has also said that its EBITDA loss will come down to Rs 950 crore in FY24. The company has projected a revenue of Rs 4,655 crores in FY 24