Ola Electric IPO: INR 1,226.43 Crore set for cell production boost, product development, and more

Delhi : As it prepares for its first public offering (IPO), Ola Electric Mobility Ltd plans to use INR 1,226.43 crore from the INR 5,500-crore public offering to increase the capacity of its cell production unit from 5 GWh to 6.4 GWh, according to preliminary documents filed with Sebi, PTI reported.

In addition, the corporation has set aside INR 1,600 crore for product development and research, and another INR 800 crore for debt reduction. Ola Electric plans to start motorcycle deliveries in the first part of fiscal 2026. The company unveiled electric bikes including the Cruiser, Adventure, Roadster, and Diamondhead on August 15, 2023.

The IPO's goals include financing the Gigafactory's growth in Tamil Nadu as well as the introduction of mass-market bikes and reasonably priced Ola S1 vehicles. Ola Cell Technologies Pvt Ltd (OCT), the company's subsidiary, will use internal accruals and long-term borrowings to finance the Gigafactory's Phase 1 (a) and Phase 1 (b). With a capacity of 1.4 GWh, Phase 1 (a) is anticipated to be finished by March 2024, while Phase 1 (b) seeks to raise capacity to 5 GWh by October 2024.

By April 2025, the 6.4 GWh capacity is the aim of the ensuing Phase 2 extension, which will further scale to 20 GWh by the second quarter of 2026. The money raised from the first public offering (IPO) would help OCT expand its cell manufacturing plant's capacity from 5 GWh to 6.4 GWh through capital expenditures. In the first part of Fiscal 2025, Ola Electric intends to introduce a range of cost-effective Ola S1 models, which will include electric two-wheelers (E2Ws).