Ola Electric IPO: The IPO of Ola Electric is the first IPO of an automobile company in 20 years

MUMBAI: Ola Electric's upcoming IPO would be the first such offering by a carmaker in India in more than two decades. In 2003, passenger car major Maruti Suzuki (then Maruti Udyog) launched its IPO.
With an expected size of about 8,500 crore rupees (about $1 billion), Ola Electric's IPO will be among the 15 largest offerings in India, according to industry data. The company is also expected to be the first pure electric vehicle (EV). Manufacturer is to be listed on the Indian stock exchanges.

Ola Electric is expected to file its draft prospectus later this month. The issue would be a combination of fresh equity capital and offers for sale from some of its existing investors, sources said. Its investors include renowned global investors such as Temasek from Singapore and SoftBank from Japan.
As the company is in the process of submitting the draft offer document, it has not provided any comment for this article.
In October this year, the company raised Rs 3,200 crore through a mix of equity and debt. A large portion of this fund will be used to accelerate an electric vehicle manufacturing unit and a battery unit at its gigafactory in Tamil Nadu, which is expected to become operational in early 2024, sources said. A gigafactory is a large manufacturing facility that produces electric vehicles with the aim of decarbonizing the environment.