Ola Electric files DRHP with SEBI to raise ₹5,500 crore via IPO
₹5,500 crore through an initial public offering (IPO). This will be the first IPO by a two-wheeler maker in India since the debut of Bajaj Auto in 2008.
The IPO will comprise an issue of fresh shares, while CEO Bhavish Aggarwal will sell up to 47.4 million shares, according to the draft papers dated December 22. Ola Electric dominates India's electric two-wheeler segment with a 32 per cent market share and competes with TVS Motor, Bajaj Auto and Ather Energy.
Also Read: Ola Electric IPO: Issue details, objectives & more; check 10 key things to know from DRHP The Bengaluru-based electric vehicle maker was last valued at $5.4-5.5 billion in October when it raised $384.43 million, including about $240 million in debt, from Temasek and State Bank of India. However, the battery scooter maker had slashed its sales goals for 2023-2025 by more than half and delayed its target of achieving profits by a year, after reduced government incentives pushed up e-scooter prices.
To hold on to its lead in e-scooters, the company is rolling out products at steep discounts to lure in new, price-sensitive buyers. Its most affordable product, the S1 X+, is now available with a flat ₹20,000 discount, bringing down its ex-showroom cost to ₹89,999 and making it one of the most affordable e-scooters in the market.
The company is in the process of building an EV hub in the Krishnagiri and Dharmapuri districts in Tamil Nadu, India, which includes the Ola Futurefactory, the upcoming Ola Gigafactory, and co-located suppliers in Krishnagiri district. The company is also pressing ahead with an aggressive retail strategy, including launching products at a discount and cutting prices of current products, trying to consolidate its market position ahead of
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