NL Corresspondent
New Delhi: Electric two-wheeler company Ola Electric and Bain Capital-backed Emcure Pharmaceuticals have received Sebi's approval to raise funds through initial public offerings (IPOs), an update with the markets regulator showed on Thursday.
The two companies, which filed their preliminary IPO papers with Sebi in December 2023, obtained observations on June 10, it added. In Sebi's parlance, its observations means its go-ahead to float the public issue.
Ola Electric's proposed IPO is a combination of fresh issue of equity shares up to Rs 5,500 crore and an offer for sale (OFS) of 9.52 crore equity shares by promoters and investors, according to the draft red herring prospectus (DRHP). The Bengaluru-based company proposed utilising the proceeds from the fresh issue for capital expenditure to be incurred by the subsidiary OCT for the Ola Gigafactory project, payment of debt by subsidiary OET, investment into research and product development, expenditure for organic growth initiatives, and general corporate purposes. Ola Electric manufactures EVs and core EV components such as battery packs and motors at Ola Futurefactory — manufacturing facility in Krishnagiri.
The company is in the process of building an EV hub in Krishnagiri and Dharmapuri districts in Tamil Nadu, which includes the Ola Futurefactory, the upcoming Ola Gigafactory, and co-located suppliers in Krishnagiri district. Ola Eelectric introduced its first EV model ‘S1 Pro' in August 2021 and currently has a portfolio of 5 scooter models. Within nine months of Ola Electric delivering its first EV scooter, it has become the best-selling electric two-wheeler player in India based on E2W registrations listed on the VAHAN Portal of the Ministry of Road Transport and Highways.
