Ola Electric makes historic move as first Indian EV company to file DRHP with SEBI

In a significant development for the Indian electric vehicle (EV) sector, Ola Electric has taken a crucial step towards its much-anticipated initial public offering (IPO) by filing its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). This marks a historic moment as it represents the first-ever attempt at a public listing by an Indian EV firm, setting a precedent for the industry.

According to industry sources, Ola Electric aims to raise a combined amount of approximately Rs 7,250 crore through its IPO. The company had previously enlisted the services of Kotak Mahindra Capital and Goldman Sachs for the IPO, which is expected to hit the market in early 2024. The IPO will comprise a mix of primary and secondary share offerings.

Insiders familiar with the matter revealed that the fresh issue component of the IPO is set at Rs 5,500 crores, with the remaining amount allocated to the offer for sale (OFS) category, totaling around Rs 1,750 crore. The selling shareholders include Ola Electric CEO Bhavish Agarrwal, along with major investors such as Softbank, Temasek, Tiger Global, Alpha Wave, Tekne, and Matrix Partners. The estimated target valuation for the IPO is around $7.5 billion.

Several prominent investment banks are involved in the IPO process, including Kotak Mahindra Capital, Citi, Goldman Sachs, Bofa Securities, ICICI Securities, Axis Capital, SBI Capital, and BoB Capital. Additionally, Cyril Amarchand Mangaldas is serving as the company counsel, while Shardul Amarchand Mangaldas is acting as the bankers' counsel in legal matters.

As Ola Electric takes this significant step towards becoming a publicly listed company, industry watchers are keenly observing the developments, anticipating the impact it will have on the Indian EV ecosystem and the broader stock market. Ola Electric's IPO is poised to be a landmark event, reflecting the growing importance and interest in the electric mobility sector in India