Ola Electric IPO: Issue details, objectives & more; check 10 key things to know from DRHP

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Ola Electric IPO: SoftBank Group-backed e-scooter maker Ola Electric filed its preliminary draft papers on Friday, December 22, with capital markets regulator Securities and Exchange Board of India (SEBI) to raise ₹5,500 crore through an initial public offering (IPO). This will be the first IPO by an Indian electric vehicle (EV) maker and also the first by a two-wheeler maker in India since the debut of Bajaj Auto in 2008.

Backed by Japan's SoftBank and Singapore's investment firm Temasek, the Bengaluru-based EV maker was valued at $5.4 billion in a recent funding round.
1.IPO Details: The issue is a fresh issue of equity shares up to ₹5,500 crore and an offer for sale (OFS) of 95,191,195 equity shares at a face value of ₹10.

CEO Bhavish Aggarwal will sell up to 47.4 million shares, according to the draft papers dated December 22. 2.IPO Reservation: The issue is being made through the book-building process, where in not less than 75 per cent of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers (QIBs), not more than 15 per cent of the issue will be available for allocation to non-institutional investors (NIIs), and not more than 10 per cent of the issue shall be available for allocation to retail individual bidders.

3.IPO Objectives: As per the DRHP, the proceeds from the fresh issue will be used for capital expenditure to be incurred by the subsidiary, Ola Cell Technologies (OCT) for the Ola Gigafactory project, repayment or pre-payment, in full or part, of the indebtedness incurred by subsidiary, Ola Electric Technologies (OET), investment into research and product development, expenditure to be incurred for organic growth initiatives and general corporate purposes. 4