Ola Electric has filed a draft prospectus with the Securities and Exchange Board of India as it takes a step closer to its first IPO. The electric vehicle manufacturer, which recently changed its name from Ola Electric Mobility Private Limited to Ola Electric Mobility Limited, is eyeing a two-fold sale in its IPO offering a mix of over 9.51 lakh existing equity shares held by various stakeholders and a fresh public issue worth up to Rs 5,500 crore.
The Rs 5,500 crore raised from the fresh issue will be used by Ola to fund its various capital expenses including expanding the production capacity of its cell manufacturing plant from 5 GWh to 6.5 GWh. Ola Electric estimates this ramp-up in production will require an investment of around Rs 1,226 crore.
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The company has estimated that the capacity expansion will be in place by April 2025 with the plant expected to it its current 5 GWh capacity in late 2024. Ola has a target of achieving a production capacity of 20 GWh at its cell plant by Q2 2026.
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Aside from the investment in the battery plant, the funding will also go into new research and development projects and payments of debts raised by Ola Electric.
Speaking of the existing shareholding going up for sale, a lion’s portion is being offered up by OLA Electric founder Bhavish Aggarwal with over 4.73 lakh shares being tabled as per the prospectus. Other parties to the share sale include fellow promotor Indus Trust as well as several investors.
Also read: Two-Wheeler Sales November 2023: Ola Electric Bags Highest-Ever Monthly Sales With 30,000 Registrations
Ola has big plans for the Indian market with the company having teased entering the electric four-wheeler market for a while now as well as entering the electric motorcycle segment. The company had earlier this year showcased several motorcycle concepts with production-spec models set to arrive as early as 2024.
