June 13, 2024
New Delhi, India
Ola Electric IPO
Ola Electric, led by Bhavish Aggarwal, has received the green light from India’s markets regulator, the Securities and Exchange Board of India (SEBI), to proceed with its initial public offering (IPO) valued at ₹5,500 crore. This IPO marks a significant milestone as the first IPO by a pure-play electric two-wheeler manufacturer in India.
IPO Details
- Issue Size: The IPO includes a fresh issue of ₹5,500 crore.
- Offer for Sale (OFS): Existing shareholders will offload 95.19 million shares.
- Major Shareholder Sale: Founder and CEO Bhavish Aggarwal plans to sell 47.3 million shares, which is half of the total OFS.
SEBI Approval and Listing Timeline
Ola Electric has obtained SEBI’s nod and expects to receive final observations within a week. The company aims to list its shares within a month, leveraging favorable market conditions despite recent volatility. This approval sets the stage for Ola Electric to enter the public market, highlighting its strong position in the electric two-wheeler sector.
Investor Interest and Roadshows
In March, reports indicated that Ola Electric was nearing agreements with anchor investors. Notable investors like Singapore-based Eastspring, a subsidiary of Prudential Plc, and UK-based Pictet had shown interest. During roadshows, Ola Electric emphasized its cutting-edge battery technology as a key differentiator.
Market Position
Ola Electric filed its draft red herring prospectus (DRHP) with SEBI in December, aiming to raise ₹5,500 crore through fresh equity. The company has solidified its market dominance, surpassing a 40% market share in electric two-wheeler sales. This growth has been driven by substantial discounts and a wide range of competitively priced e-scooters.
Conclusion
Ola Electric’s impending IPO highlights its leadership in India’s electric two-wheeler market. With SEBI’s approval, the company is poised to capitalize on investor interest and favorable market conditions. The IPO will not only provide a significant boost to Ola Electric’s growth plans but also reinforce its position as a dominant player in the industry. The listing is anticipated within a month, marking a new chapter for the electric mobility pioneer.
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