Ola Electric aims to raise Rs 5500 Cr by its upcoming IPO on Aug 2nd

Ola Electric on Tuesday showed its intention to announce an initial public offering (IPO) to raise money for cell production, R&D, and debt repayment, as the company prepares for a significant push into the electric vehicle (EV) industry. 

The IPO scheduled for August 2 is expected to raise Rs 5,500 crore in basic capital and an additional Rs 645.6 crore through an offer for sale (OFS) from existing investors.

"We are raising capital for research and development as well as cell manufacturing," Ola Electric Mobility's Chief Financial Officer Harish Abichandani stated. "All of them are taken into account when calculating future cash flows. The road to profitability gets faster as we grow."

Abichandani underlined that the firm has adequate funding for its planned capital expenditures related to the production of cells and vehicles.

Citing the CEO of Ola Electric, Bhavish Aggarwal, Business Today reported, "We are focused on bringing EVs to the mass market and we do expect mass market products to penetrate deeper into the small towns and villages."

Aggarwal highlights Ola Electric's robust Indian manufacturing foundation, noting that the firm's dedication to domestic production played a pivotal role in the choice to make an early public offering. "The company is young, and we wanted to bring this company to market early because of its Indian manufacturing story," the report further cited.