Ola Electric Gets Obligation Subsidizing In front of Initial public offering

Ola Electric, a Bangalore-based electric vehicle (EV) producer with plans to open up to the world, has gotten ₹100 crore ($12 million) in the red funding from Alteria Capital. This denotes the second round of obligation financing for Ola Electric in 2024.

The organization’s board endorsed the issuance of 10,000 non-convertible debentures (NCDs) with a presumptive worth of ₹1 lakh each to raise the ₹100 crore, according to administrative filings with the Enlistment center of Organizations (RoC). This financing round follows a past $50 million obligation implantation from EvolutionX got two months prior.

Debt Details and Company Valuation

The newly issued debentures carry an interest rate of 13.8% per annum with an additional penalty interest of 2% per month in case of delayed payments. According to data platform TheKredible, Ola Electric, led by Bhavish Aggarwal, has garnered over $1 billion in combined equity and debt funding. The company’s valuation was estimated at $5.4 billion during its most recent funding round.

IPO Progress and Shareholding Structure

In December 2023, Ola Electric filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) seeking approval for an initial public offering (IPO) to raise ₹5,500 crore ($660 million). Media reports suggest that SEBI has already granted the company the green light for its public listing.

The DRHP filing reveals Bhavish Aggarwal as the largest shareholder with a 36.94% stake, followed by SoftBank at 21.98%. Other notable investors include Tiger Global (6.03%), Indus Trust (3.85%), and Alpha Wave (3.49%).

Financial Performance and Market Position

Ola Electric experienced significant revenue growth in FY23, with a seven-fold increase to ₹2,631 crore compared to ₹373 crore in FY22. However, the company’s losses also grew by 87.76% to ₹1,472 crore in the fiscal year ending March 2023.

In the two-wheeler electric vehicle segment, Ola Electric competes with players like Hero Electric, Ather Energy, and TVS. Backed by SoftBank, Ola Electric currently holds a dominant position with a 49% market share in the two-wheeler EV segment, registering 37,191 e-scooters in May according to Vahan data.