Ola Electric, the homegrown electric two-wheeler manufacturer, has reportedly filed its draft red herring prospectus (DRHP) with India's capital markets regulator, the Securities and Exchange Board of India (SEBI). The company aims to initiate an Initial Public Offering (IPO), marking the first-ever IPO by an Indian electric vehicle (EV) firm.
As per reports, the IPO's fresh issue component is set at Rs 5,500 crore, with the remaining amount constituting the offer for sale (OFS) category, approximately Rs 1,750 crore.
The IPO is expected to fuel Ola Electric's expansion plans within the EV sector, including the establishment of a lithium-ion cell manufacturing facility. The company entered the market in December 2021 and has already sold more than 353,000 units to date.
However, despite growth in sales, Ola Electric has seen its net loss nearly double to Rs 1,472 crore in FY23 compared to Rs 784.1 crore in the previous fiscal year. This substantial increase in losses is attributed to a surge in expenses. The company reported an EBITDA loss of Rs 1,318 crore as total expenses escalated to Rs 3,383 crore, up from Rs 1,240 crore in FY22.
(With Agency Inputs)
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