The Security Exchange Board of India (SEBI) has finally given Ola Electric the all-clear to proceed with its initial public offering (IPO), six months after the company filed a draft red herring prospectus (DRHP).
Ola Electric submitted the DRHP in December 2023 in an effort to raise Rs 5,500 crore ($660 million) through a possible public offering.
Bhavish Aggarwal holds the greatest stake in Ola Electric with 36.94% of the company’s shares, followed by SoftBank with 21.98%, according to the DRHP of the company. Shares are owned by Tiger Global, Indus Trust, and Alpha Wave, in that order: 6.03%, 3.85%, and 3.49%.
In two installments, Ola Electric has raised $62 million in debt since submitting the DRHP. Included in that debt is an April $50 million loan from EvolutionX. Earlier this month, the most recent tranche arrived. With over $1 billion raised in debt and equity rounds to date, Ola Electric was last valued at $5.5 billion.
Ola Electric saw exponential growth in FY23 as its operating revenue increased seven-fold to Rs 2,631 crore. Its losses increased by 87.76% to Rs 1,472 crore in the fiscal year that ended in March 2023, despite this magnitude. FY24 annual report for the company has not yet been filed.
Ather Energy, Ola Electric’s direct rival, is also getting ready for an IPO. Recently, the Tarun Mehta-led business gave early investor Sachin Bansal an exit, allowing him to sell Hero MotoCorp and Zerodha co-founder Nikhil Kamath his 7.5% stake.
It seems that startups in the public market have better chances in the current calendar year (2024). Over ten startups made their stock market debuts in 2021. 2022 saw two IPOs, and 2023 saw five IPOs, a sharp decline in this number. Nonetheless, in 2024, initial public offerings (IPOs) have gained significant traction due to the listing of numerous internet companies, including TBO Tech, Digit Insurance, Awfis, and Ixigo. Meanwhile, FirstCry, Mobikwik, Unicommerce, and Swiggy are still awaiting regulatory approval.
