Ola Electric filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on December 22, 2023. The company competes with other significant players in the market, including TVS Motors, Bajaj Auto, and Ather Energy. Investment banks such as Kotak Mahindra Capital, Axis Capital, Goldman Sachs, ICICI Securities, Citi, BofA Securities, SBI Caps, and BoB Caps are assisting in the deal. Cyril Amarchand Mangaldas is acting as the company counsel.
On July 24, Moneycontrol reported Ola Electric's plans to raise approximately USD 740 million. The company aims to utilize the proceeds for capital expenditure, repaying debt, and research and development (R&D) as per its draft filing.
"As per the proposed timeline, the listing of the firm, which is set to become the first-ever Indian EV two-wheeler to drive into Dalal Street, is likely on August 9," said multiple industry sources.
On May 25, 2023, that Ola Electric had roped in Kotak Mahindra Capital and Goldman Sachs as advisors for the IPO. Earlier, on April 19,it was also reported that ANI Technologies, the parent company of Ola Cabs, had initiated discussions with investment banks regarding a potential IPO for the ride-hailing business.
Ola Electric's existing shareholders plan to sell 95.19 million shares in the Offer for Sale (OFS). Founder Bhavish Aggarwal will be selling 47.3 million shares, while AlphaWave, Alpine, DIG Investment, Matrix, and other initial investors will be selling a combined 47.89 million shares according to the draft filing with SEBI.
Experts suggest that if Ola Electric's IPO succeeds, it could pave the way for more EV-related companies to explore public listings. The company's rapid growth and the increasing focus on electric vehicles in India make this IPO highly anticipated in the market.
In summary, Ola Electric's IPO is poised to make history as it becomes the first Indian EV two-wheeler to be listed on Dalal Street. With a targeted valuation of up to USD 4.25 billion and significant backing from both its existing shareholders and financial advisors, this public offering is one to watch.
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