Ola Electric is on the cusp of making history with its upcoming Initial Public Offering (IPO), marking a significant milestone as the first automotive manufacturer in India to go public in over two decades. The last instance of such an occurrence date back to 2003 when Maruti Suzuki, then known as Maruti Udyog, launched its IPO.
The anticipated scale of the Ola Electric IPO is substantial, with expectations reaching approximately Rs 8,500 crore, equivalent to around $1 billion. Industry data indicates that this IPO will rank among the top 15 offerings in India in terms of size, underscoring the magnitude of this financial move. Beyond its size, the IPO is poised to make history by positioning Ola Electric as the maiden pure-play electric vehicle (EV) manufacturer to be listed on Indian stock exchanges.
Sources suggest that Ola Electric is gearing up to submit its draft prospectus later this month. The IPO structure will encompass a blend of fresh equity and offers for sale by existing investors, with notable global names like Temasek from Singapore and SoftBank from Japan among those participating.
As part of its strategic financial maneuvers, Ola Electric recently secured Rs 3,200 crore in October of the current year through a mix of equity and debt. A significant portion of these funds is earmarked for expediting key initiatives, particularly the development of an EV manufacturing unit and a cutting-edge battery facility. The location for these advancements is Ola Electric’s gigafactory situated in Tamil Nadu. This manufacturing powerhouse is anticipated to become operational by early 2024, symbolizing a substantial commitment to producing electric vehicles as a means of contributing to environmental decarbonization.
As the company is diligently working on finalizing the draft offer document, it has chosen not to provide comments on the unfolding developments at this time. The successful execution of the IPO and subsequent utilization of funds underline Ola Electric’s commitment to advancing electric mobility and shaping the future of sustainable transportation in India.
