Ola Electric IPO: Bhavish Aggarwal, the Founder, Plans to Sell 47.4 Million Shares

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Ola Electric IPO: Bhavish Aggarwal, the Founder, Plans to Sell 47.4 Million Shares

Ola Electric IPO: Founder Bhavish Aggarwal Plans to Sell 47.4 Million Shares in E-Scooter Maker


As revealed in the preliminary draft papers filed with SEBI on December 22, Bhavish Aggarwal, the founder of Ola Electric, is intending to sell approximately 47.4 million shares in the SoftBank Group-backed e-scooter company. The proposed initial public offering (IPO) includes a fresh equity share release of up to ₹5,500 crore and an offer for sale (OFS) of 95,191,195 equity shares at a face value of ₹10. The IPO adopts a book-building approach, with allocations earmarked for qualified institutional buyers (QIBs), non-institutional investors (NIIs), and retail individual bidders. The company aims for a valuation between $7-8 billion by early 2024. While IPO subscription dates are pending, reports suggest they may commence in early 2024. The offer price and IPO price band remain undisclosed.




Utilization of Funds


As outlined in the draft red herring prospectus (DRHP), the proceeds from the fresh issue are earmarked for various purposes, including ₹1,226.4 crore for Ola Cell Technologies' Gigafactory project, ₹1,600 crore for research and development (R&D) investments, ₹350 crore for organic growth initiatives and general corporate purposes, and ₹800 crore to repay/pre-pay debts of Ola Electric Technologies (OET). The book-running lead managers include Kotak Mahindra Capital, Citigroup Global Markets India, BofA Securities India, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, SBI Capital Markets, and BOB Capital Markets. Link Intime India serves as the appointed registrar of the offer.

Ola's Financial Performance


In fiscal year 2023, Ola Electric witnessed a significant increase in revenue from operations, reaching ₹2,630.93 crore from ₹373.42 crore in the previous year. For the quarter ending June 30, 2023, the revenue from operations stood at ₹1,242.75 crore. Notably, the company emerged as a leader among Indian electric 2-wheelers (E2Ws) and original equipment manufacturers (OEMs) in terms of revenue from E2W sales in FY23. On November 17, Ola Electric underwent a transformative shift to become a public company, a crucial step in its preparations for an IPO. This transition involved corporate restructuring and a name change from Ola Electric Mobility Private Limited to Ola Electric Mobility Limited, in compliance with the mandatory procedure for firms aspiring to be listed on the stock exchange.

Ola Electric IPO
Bhavish Aggarwal shares sale
SoftBank-backed e-scooter maker
Preliminary draft papers SEBI
Fresh equity share release
Offer for sale (OFS)
IPO book-building
Qualified institutional buyers (QIBs)
Non-institutional investors (NIIs)
Retail individual bidders
Valuation target $7-8 billion
IPO subscription dates
Offer price disclosure
Utilization of IPO funds
Ola Cell Technologies Gigafactory
Research and development (R&D) investments
Organic growth initiatives
Debt repayment Ola Electric Technologies (OET)
Book-running lead managers
Link Intime India registrar
Ola's financial performance
Fiscal year 2023 revenue
Quarter ending June 30, 2023
Electric 2-wheelers (E2Ws) market
Original equipment manufacturers (OEMs)
IPO preparation milestones
Corporate restructuring
Name change Ola Electric Mobility Limited
Mandatory procedure for stock exchange listing.












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