Ola Electric, a top EV startup in Bengaluru, has received approval from the Securities and Exchange Board of India (Sebi) for its initial public offering (IPO). This is a significant milestone as it’s the first time an EV startup in India has secured Sebi’s approval for an IPO. An official announcement from Sebi is expected soon. Bhavish Aggarwal, the founder of Ola Electric, has already informed some employees about this regulatory green light.
The company submitted its draft red herring prospectus (DRHP) to Sebi on December 22. Ola Electric plans to raise up to Rs 5,500 crore through a fresh issue of shares. The IPO will also feature an offer-for-sale (OFS) component, which includes 95.2 million shares. According to bankers, Ola Electric is aiming for a valuation of $6 billion through this public offering.
Ola Electric IPO FAQs
- First EV Startup IPO: This will be the first IPO by an EV startup in India.
- Biggest New-Age IPO: It is set to be one of the biggest new-age IPOs this year.
- Funds Raised: Ola is proposing to raise up to Rs 5,500 crore through a fresh issue of shares, in addition to an offer-for-sale (OFS) of 95.2 million shares.
- Valuation Goal: Ola Electric is targeting a $6-billion valuation through the public offering.
- Shares to Be Sold: Bhavish Aggarwal is expected to sell up to 47.4 million shares (about 1.3% stake) via the IPO. Other shareholders include SoftBank Vision Fund (23.8 million shares), Tiger Global (6.4 million shares), Alpha Wave Global (3.8 million shares), Matrix Partners India (3.7 million shares), and Temasek (1.3 million shares).
- Potential Earnings: At a $6 billion valuation, Aggarwal could make around $78 million from the share sale.
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