Ola Electric files for IPO, on track to become the first Indian EV firm to go public

As per the DRHP, Ola Electric's IPO will comprise a fresh issue worth Rs 5,500 crore and an offer for sale of 95.2 million equity shares.

Ola Electric files for IPO, on track to become the first Indian EV firm to go public

Friday December 22, 2023,

3 min Read

Electric mobility startup Ola Electric took another step towards its public listing with the filing of its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).


The company's upcoming initial public offering (IPO) will include a fresh issue of equity shares worth Rs 5,500 crore and an offer for sale of 95.2 million equity shares at a face value of Rs 10. 


A minimum of 75% of the issue will be allocated to qualified institutional buyers; up to 15% shall be available for allocation to non-institutional bidders and a maximum of 10% will be designated for allocation to retail individual bidders, as per the prospectus.


According to the DRHP, of the total proceeds from the fresh issue, the largest share of funds, that is Rs 1,600 crore, will be used for the company’s research and product development projects. Also, Rs 1,226.4 crore will be used by subsidiary Ola Cell Technologies for the construction of the Ola Gigafactory project; Rs 800 crore will be used for repayment of loans, and the rest will be used for organic growth initiatives and general corporate purposes.


Ola Electric is building vertically integrated technology and manufacturing capabilities for EVs and core EV components, including cells. It makes EVs and core EV components such as battery packs and motors at Ola Futurefactory, its manufacturing facility in Krishnagiri district, Tamil Nadu. 

Ola Electric


The Ola Futurefactory is the largest integrated and automated E2W (electric two-wheeler) manufacturing plant in India based on production capacity, as of September 30, 2023, according to a Redseer report. It is actively constructing an electric vehicle (EV) hub across Krishnagiri and Dharmapuri districts in Tamil Nadu. This hub includes the Ola Futurefactory, the forthcoming Ola Gigafactory, and associated suppliers in Krishnagiri.


As per the DRHP, the company operates its direct-to-customer omnichannel distribution network, comprising 935 experience centres across India, including 414 service centres, as of October 31, 2023. 

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Ola Electric

In FY23, Ola’s revenue from operations surged over seven-fold to Rs 2,630.93 crore, compared with Rs 373.42 crore in the preceding year. For the quarter ended June 30, 2023, revenue from operations reached Rs 1,242.75 crore.


The company has also been approved for production-linked incentive (PLI) schemes, including the Automobile PLI Scheme for the manufacturing of advanced automotive technology products and the Cell PLI Scheme for advancing cell chemistry batteries.


The book-running lead managers for the IPO include Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, BofA Securities India Limited, Goldman Sachs (India) Securities Private Limited, Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited, and BOB Capital Markets Limited. Link Intime India Private Limited is appointed as the registrar of the offer. The equity shares are intended to be listed on both the BSE and NSE.

(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director in Ola Electric.)


Edited by Kanishk Singh