Ola Electric has received the green signal from SEBI to enter the stock market. The Securities and Exchange Board of India has approved Ola Electric’s Rs 5,500 crore IPO. With this, Ola Electric has become the first startup company to bring an IPO and it will be one of the biggest IPOs coming this year.
According to the information revealed, the capital market regulator will formally issue approval in the coming days.
Bengaluru-based EV startup Ola Electric had filed its draft red herring prospectus (DRHP) with the market regulator on December 22, proposing to raise up to Rs 5,500 crore through a fresh issue besides an offer-for-sale (OFS) component of 95.2 million shares.
The company will raise Rs 5500 crore by issuing new shares in the IPO, while Rs 1750 crore will be raised under the offer for sale. Existing shareholders will sell 95.19 shares in the offer for sale.
According to the Ola Electric IPO draft, Bhavish Agarwal will sell 47.4 million shares or about 1.3% stake through the IPO, followed by SoftBank Vision Fund (23.8 million), Tiger Global (6.4 million), Alpha Wave Global (3.8 million), Matrix Partners India (3.7 million) and Temasek (1.3 million).
Ola Electric will become the first Indian EV company to launch its IPO. This will be the first time in 21 years that an automobile company will launch an IPO in India.
The last time Maruti Suzuki (then Maruti Industries) came up with an IPO was in 2003. Ola Electric’s IPO is going to be one of the most talked about IPOs of 2024.