Ola Electric files DRHP and intends to make capex investments of Rs 1,226 crore

 Ola Electric files DRHP and intends to make capex investments of Rs 1,226 crore

With a total IPO size of Rs 7,250 crore, the electric vehicle manufacturer also plans to spend up to Rs 1,600 crore of the net proceeds in R&D.

Ola Electric Mobility submits filings to SEBI for its IPO.

The domestic electric vehicle manufacturer Ola Electric said on December 22 that it plans to spend Rs 1,226 crore in capital expenditure (capex) in their draft red herring paper (DRHP), which it submitted with the market regulator Securities Exchange Board of India (SEBI). 800 crore rupees will be used to pay back the debt.

A new issuance of up to Rs 5,500 crore and an offer to sell 95.19 million equity shares to selling shareholders make up the company's initial public offering (IPO).

The IPO is worth a total of Rs 7,250 crore, including OFS.

The manufacturer of electric vehicles (EVs) plans to allocate up to Rs 1,600 crore of the net profits to research and development, and another Rs 350 crore to inorganic growth projects. The remaining money will be utilized for regular business costs, citing the DRHP paper.

Additionally, the business intends to use pre-IPO placement to raise Rs 1,100 crore.

"If a pre-IPO placement takes place, the size of the fresh issue will be adjusted to the extent of such pre-IPO placement, subject to compliance with the guidelines," the company said in its DRHP filing.

Bhavish Aggarwal, the creator of Ola Electric, will also participate in the sale of up to 47.3 million shares, along with investors AlphaWave, Alpine, DIG Investments, Matrix, and others.

First to reveal that Ola Electric had enlisted Goldman Sachs and Kotak Mahindra Capital for an IPO in early 2024 was Moneycontrol.

According to sources, the corporation is seeking to raise money at a $7–$8 billion value.

Bhavish Aggarwal founded Ola in 2015, and it is still the market leader for electric vehicle two-wheelers. Additionally, the business constructed a mega plant in Krishnagiri, Tamil Nadu. In Tamil Nadu, it intends to establish India's first lithium-ion cell manufacturing plant in addition to growing Ola's EV business.

Ola Electric's consolidated sales increased to Rs 2,782 crore in FY2013, a roughly 51% increase, while the company's net loss doubled to Rs 1,472 crore from Rs 784 crore in FY2012.

Ola Electric said on December 6 that it aims to achieve EBITDA profitability of Rs 803 crore in FY2025 in a memorandum sent to investors and bankers. Additionally, the business has said that in FY 2024, its EBITDA loss would drop to Rs 950 crore. For FY24, the business projects sales of Rs 4,655 crore.