Indian electric two-wheeler manufacturer Ola Electric Mobility Ltd. plans to raise capital via an initial public offering (IPO) to fund the group’s capital expenditure and repayment of debt.
The IPO will consist of fresh issue of equity shares to raise as much as 5,500 crore rupees ($661 million) and an offer for sale of around 9.52 crore shares, according to Ola Electric’s draft red herring prospectus (DRHP).
The Bengaluru-based company, promoted by Bhavish Aggarwal, filed its DRHP with the capital market regulator Securities and Exchange Board of India (SEBI).
Here's a quick look at Ola Electric’s upcoming IPO:
BUSINESS OVERVIEW
Ola Electric, a pure electric vehicle (EV) player in India, is building vertically integrated technology and manufacturing capabilities for EVs and EV components, including cells.
The company manufactures EVs and certain core EV components like battery packs, motors and vehicle frames at the Ola Futurefactory.
The company, whose EV portfolio includes S1 Pro, S1 Air and S1 X models, has also announced a line-up of motorcycles comprising four models, Diamondhead, Adventure, Roadster and Cruiser.
Ola Electric operates a direct-to-customer omni-channel distribution network across India, comprising 935 experience centers and 414 service centers, as of 31 October 2023.
SHAREHOLDING SNAPSHOT
Bhavish Aggarwal currently owns about 136.19 crore shares in Ola Electric, or a 36.94% stake in the company.
Promoter group entity ANI Technologies Private Ltd. owns 16.04 crore shares, or a 4.35% stake in Ola Electric.
Promoter group entity Indus Trust owns about 14.20 crore shares, or a 3.85% stake in Ola Electric.
ISSUE SNAPSHOT
Fresh Issue of equity shares aggregating up to 5,500 crore rupees
Offer for Sale of up to 9.52 crore shares
The equity shares are proposed to be listed on the BSE and NSE
SELLING SHAREHOLDERS
Bhavish Aggarwal (Promoter) - Up to 4.74 crore shares
Indus Trust (Promoter Group) - Up to 41.79 lakh shares
Investor Selling Shareholders
Alpha Wave Ventures II LP
Alpine Opportunity Fund VI LP
DIG Investment IV AB
Internet Fund III Pte Ltd.
MacRitchie Investments Pte. Ltd.
Matrix Partners India Investments III LLC
SVF II Ostrich (DE) LLC
Tekne Private Ventures XV Ltd.
FINANCIAL SNAPSHOT
1QFY24: loss of 267.16 crore rupees on revenue of 1242.75 crore rupees
FY23: loss of 1,472.08 crore rupees versus loss of 784.15 crore rupees in FY22
FY23: revenue of 2,630.93 crore rupees versus 373.42 crore rupees in FY22
USE OF PROCEEDS
Capital expenditure of subsidiary Ola Cell Technologies Private Ltd. - 1,226.43 crore rupees
Capital expenditure will be for the capacity expansion of cell manufacturing plant (Ola Gigafactory) to 6.4 Gigawatt hours (GWh) from 5 GWh
Debt repayment or pre-payment, in full or part, of subsidiary Ola Electric Technologies Private Ltd. – 800 crore rupees
Investment into research and product development – 1,600 crore rupees
Expenditure for organic growth initiatives – 350 crore rupees
General corporate purposes
FINANCIAL DEBT
Consolidated outstanding borrowings stood at 1768.82 crore rupees as of 31 October 2023.
SUBSIDIARIES
Ola Electric Technologies Private Ltd.
Ola Electric Charging Private Ltd.
Ola Cell Technologies Private Ltd.
US-based Ola Electric Mobility Inc.
Ola Electric UK Private Ltd.
Netherlands-based Ola Electric Mobility B.V.
Netherlands-based Ola Electric Technologies B.V
Netherlands-based Etergo B.V.
Netherlands-based Etergo Operations B.V.
China-based EIA Trading (Shanghai) Co. Ltd.
BOARD OF DIRECTORS
Bhavish Aggarwal (Chairman and Managing Director)
Krishnamurthy Venugopala Tenneti (Non-Executive Director)
Arun Sarin (Non-Executive Director)
Manoj Kumar Kohli (Independent Director)
Ananth Sankaranarayanan (Independent Director)
Shradha Sharma (Independent Director)
REMUNERATION DETAILS
Bhavish Aggarwal: Base salary of six crore rupees and variable pay of three crore rupees
BOOK-RUNNING LEAD MANAGERS
Kotak Mahindra Capital Company Ltd., Citigroup Global Markets India Private Ltd., BofA Securities India Ltd., Goldman Sachs (India) Securities Private Ltd., Axis Capital Ltd., ICICI Securities Ltd., SBI Capital Markets Ltd. and BOB Capital Markets Ltd.
Source: Draft Red Herring Prospectus
Note: $1 = 83.2058 Indian rupees
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