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EV Company Ola Electric files DRHP for IPO

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Bengaluru:  Ola Electric, a pure EV player, has filed its Draft Red Herring Prospectus (DRHP) with capital market regulator SEBI to raise funds for its initial public offering (IPO).

The Issue is a fresh issue of equity shares up to ₹ 5,500 crore and an offer for sale (OFS) of 95,191,195 equity shares at a face value of ₹ 10.

The issue is being made through the book-building process, wherein not less than 75% of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the issue shall be available for allocation to non-institutional bidders, and not more than 10% of the issue shall be available for allocation to retail individual bidders.

As per the DRHP, the proceeds from the fresh issue will be used for capital expenditure to be incurred by the subsidiary, OCT for the Ola Gigafactory project, repayment or pre-payment, in full or part, of the indebtedness incurred by subsidiary, OET, investment into research and product development, expenditure to be incurred for organic growth initiatives and general corporate purposes.

The leading EV player is building vertically integrated technology and manufacturing capabilities for EVs and core EV components, including cells. It manufactures EVs and core EV components such as battery packs and motors at Ola Futurefactory, its manufacturing facility in Krishnagiri. The Ola Futurefactory is the largest integrated and automated E2W manufacturing plant in India based on production capacity, as of September 30, 2023, according to the Redseer Report. The company is in the process of building a EV hub in Krishnagiri and Dharmapuri districts in Tamil Nadu, India, which includes the Ola Future factory, the upcoming Ola Gigafactory and co-located suppliers in Krishnagiri district.

It introduced its first EV model – S1 Pro in August 2021 and currently has a portfolio of 5 scooter models. Within nine months of Ola Electric delivering its first EV scooter, it surged to become the best-selling E2W player in India based on E2W registrations listed on the VAHAN Portal of the Ministry of Road Transport and Highways. As of three-months period ended June 30, 2023, it has an E2W market share of 31% and aims to explore exporting EVs to specific international markets in the future.

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