Ola Electric Receives SEBI Approval For Rs 5,500 Cr IPO

Ola Electric has secured approval from the Securities and Exchange Board of India (SEBI) for its highly anticipated initial public offering (IPO) to raise Rs 5,500 crore (USD 660 million), according to media reports. The green light comes six months after the company filed its draft red herring prospectus (DRHP) in December 2023.

Since submitting the DRHP, Ola Electric has raised an additional USD 62 million in debt through two tranches, including a USD 50 million debt infusion from EvolutionX in April. The company has now amassed over USD 1 billion in equity and debt, with its latest valuation at USD 5.5 billion.

Media reports disclosed that as per DRHP, Bhavish Aggarwal, co-founder of Ola, holds the largest stake in Ola Electric at 36.94 per cent, with significant shareholders including SoftBank at 21.98 per cent, Tiger Global at 6.03 per cent, Indus Trust at 3.85 per cent, and Alpha Wave at 3.49 per cent.

Ola Electric's IPO approval marks a significant milestone as it aims to capitalize on the burgeoning demand for electric vehicles and expand its market presence both domestically and internationally.