Ola Electric, an emerging player in the electric mobility sector, has taken a significant stride towards its Initial Public Offering (IPO) by transforming itself into a public company. This momentous development involved a corporate restructuring and a change in the company’s name from Ola Electric Mobility Private Limited to Ola Electric Mobility Limited.
To be listed on the stock exchange, the conversion from a private limited company to a public company is a necessary process. The Ministry of Corporate Affairs issued a certificate of incorporation on November 17, confirming the change in status. This conversion paves the way for Ola Electric’s IPO, which is anticipated to occur in early 2024 and is projected to generate up to $700 million.
By going public, Ola Electric aims to acquire the capital essential for rapid expansion, technological advancements, and market dominance within the competitive electric mobility industry. The IPO will comprise a combination of primary and secondary share offerings, as previously reported when the company enlisted the services of Kotak Mahindra Capital and Goldman Sachs.
Recent developments have further bolstered Ola Electric’s financial standing. The company recently concluded a funding round, raising Rs 3,200 crore (approximately $380 million) through a mix of debt and equity investment. Renowned investors led by Temasek, along with debt from the State Bank of India (SBI), contributed to this successful round. These funds will be utilized to expand Ola’s EV business and establish India’s first lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu.
With the expansion of its scooter portfolio and the ongoing development of a separate battery manufacturing unit, Ola Electric continues to solidify its position in the market. The company, founded by Bhavish Aggarwal, has gained immense popularity in India, where the use of electric vehicles is actively promoted.
Q: What does Ola Electric’s transformation into a public company mean?
A: It marks an important step towards its IPO and allows the company to be listed on the stock exchange.
Q: When is Ola Electric expected to launch its IPO?
A: The IPO is projected to take place in early 2024.
Q: How much funding does Ola Electric aim to raise through its IPO?
A: Ola Electric intends to generate up to $700 million through its IPO.
Q: What will the funds from the recent funding round be used for?
A: The funds will be utilized to expand Ola Electric’s EV business and establish the first lithium-ion cell manufacturing facility in India.
Q: Who are the major investors involved in the recent funding round?
A: The funding round was led by Temasek, with debt investment from the State Bank of India (SBI).