Ola Electric, Emcure Pharma Get Sebi's Nod To Float IPO

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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.

As of the three months ended June 2023, it had an E2W market share of 31 per cent and aims to explore exporting EVs to specific international markets in the future. The company operated direct-to-customer (D2C) omni-channel distribution network, comprising 935 experience centres situated across India, which include 414 service centres, as of October 31, 2023.

For the fiscal year 2023, revenue from operations jumped more than seven times to Rs 2,630.93 crore against Rs 373.42 crore a year ago. Emcure Pharmaceuticals' IPO is a combination of fresh issuance of equity shares worth Rs 800 crore and an OFS of 1.36 crore equity shares by promoters and existing shareholders, as per the draft red herring prospectus.

Those selling shares in the OFS include promoter Satish Mehta and investor BC Investments IV Ltd, an affiliate of US-based private equity major Bain Capital. Currently, Satish Mehta holds a 41.92 per cent stake in the company and BC Investments owns a 13.09 per cent stake.

Proceeds of the fresh issue will be used towards payment of debt and for general corporate purposes. Pune-based firm Emcure Pharmaceuticals is engaged in developing, manufacturing, and globally marketing a broad range of pharmaceutical products across several major therapeutic areas.