Ola Electric gets SEBI nod for Rs 5,500 crore IPO

Ola Electric is eyeing a valuation of $6 billion.

Ola Electric has received the approval of the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO), which will be the first by an EV startup in India.

According to reports, Ola Electric is eyeing a valuation of $6 billion. The Bangalore-based startup had filed a Draft Red Herring Prospectus (DRHP) with SEBI on December 22 and has proposed to raise up to Rs 5,500 crore through a fresh issue and an offer-for-sale (OFS) component of 95.2 million shares.

As per the draft IPO, Ola Electric’s former chief business officer Ankush Aggarwal will sell up to 47.4 million shares (1.3% stake) via the IPO. Other investors, including the SoftBank Vision Fund, will sell 23.8 million shares, along with Tiger Global (6.4 million), Alpha Wave Global (3.8 million), Matrix Partners India (3.7 million) and Temasek (1.3 million).

OIa Electric plans to use the proceeds from the IPO to expand the capacity of its cell manufacturing unit from 5 GWh to 6.4 GWh. A part of it will be used to repay loans, while the remaining will be invested in research and product development.

Source: ET