Ola Electric has secured approval from the Securities Exchange Board of India (SEBI) to proceed with its much-anticipated initial public offering (IPO), aimed at raising Rs 5,500 crore (approximately $660 million). This approval comes six months after Ola Electric filed its draft red herring prospectus (DRHP) in December 2023.
According to the details outlined in its DRHP, Bhavish Aggarwal holds the largest stake in Ola Electric, owning 36.94% of the shares, followed by SoftBank with 21.98%. Other notable shareholders include Tiger Global, Indus Trust, and Alpha Wave, owning 6.03%, 3.85%, and 3.49% of the shares respectively.
Since filing its DRHP, Ola Electric has raised $62 million in debt across two tranches, with $50 million secured from EvolutionX in April and an additional tranche earlier this month, as reported exclusively by Entrackr. These funds add to Ola Electric’s substantial financial backing, which exceeds $1 billion from both equity and debt rounds, valuing the company at $5.5 billion in its last funding round.
In terms of financial performance, Ola Electric experienced significant growth in FY23, with its operational revenue soaring seven-fold to Rs 2,631 crore. However, the company also reported a substantial increase in losses, rising by 87.76% to Rs 1,472 crore for the fiscal year ending March 2023. Details for FY24 are yet to be disclosed as the company awaits its annual report.
The approval of Ola Electric’s IPO comes amid a promising year for startup listings in India’s public markets. Notable startups like TBO Tech, Digit Insurance, Awfis, and Ixigo have already gone public in 2024, with others such as FirstCry, Mobikwik, Unicommerce, and Swiggy also preparing for their IPOs pending regulatory approval.