Ola Electric Gets Approval from SEBI to Launch IPO, Company to Raise Rs 5,500 Crore

Ola Electric, one of the largest electric two-wheeler companies, has received approval from markets regulator SEBI for an Initial Public Offer (IPO). The company will raise around Rs 5,500 crore through this IPO. This fund will be used for capital expenditure, repayment of debt and research and development (R&D).

This IPO will include new shares worth about Rs 5,500 crore and an offer for sale (OFS) of about Rs 1,750 crore. Existing shareholders can sell more than 9.59 crore shares in the OFS. In this, about 4.73 crore shares will be sold by Ola Electric founder Bhavish Aggarwal. The company had submitted documents to the Securities and Exchange Board of India (SEBI) in December last year to bring an IPO.

Last month, Ola Electric’s sales grew by more than six percent to 37,191 units. In the same month last year, the company sold more than 35,000 units. Ola Electric’s new S1 X range has contributed significantly to the sales and its market share has increased to about 49 percent. The prices of the company’s S1 X range range between Rs 74,999 and Rs 99,999 (ex-showroom). S1 X has been made available in 2 kW, 3 kW and 4 kW battery options.

Its 2 kW battery variant has a certified range of about 91 km on a single charge. It takes about 7.4 hours to charge its battery. It can reach a speed of 0-40 kmph in about 4.1 seconds. Its top speed is around 85 kmph. It has three riding modes – Eco, Normal and Sports. This electric scooter has a 3.5 inch LCD screen. The 3 kW battery variant of the S1 X has a range of about 151 km and a top speed of about 90 kmph. It gives a range of about 190 km with a 4 kW battery. Ola Electric has also prepared to expand its fast charging network. It has introduced a portable fast charger. The price of this 3 kW charger is Rs 29,999. Recently, the company offered an extended warranty of eight years or 80,000 km for electric scooters.