NEW DELHI: Electric car company Ola Electric officially announced on Sunday that it will hold an initial public offering (IPO). This will probably take place in early August. The company will announce more details on Monday.

Ola Electric CEO Bhavish Aggarwal and CFO Harish Abichandani will comment on the upcoming IPO, the company said in a statement.

According to multiple reports, Ola Electric will go public on August 2 with a fresh issue of shares worth Rs 5,500 crore.

The public offering opens for private subscriptions on August 2 and closes on August 6.

According to reports, promoters Aggarwal and Indus Trust are likely to sell 3.79 crore and 41.79 lakh shares respectively under the offer for sale (OFS).

The company plans to spend around Rs 1,227 crore from the IPI increase on expanding the capacity of its cell manufacturing plant.

The electric car company will also spend the money from the IPO on research, product development and business expansion.

Meanwhile, Ola Electric’s net loss in FY24 widened 7.6 percent to Rs 1,584.4 crore, compared to Rs 1,472.1 crore in the previous fiscal.

The company reported a 90 percent increase in its operating income to Rs 5,009.8 crore, from Rs 2,630.9 crore in FY23, according to its red herring prospectus (RHP).

According to the company, revenue from electric scooter sales in fiscal 2024 was primarily dependent on sales of Ola S1 Pro scooter models.

The premium scooter Ola S1 Pro contributed almost 60 percent to the total turnover.

The company sold 3.29 lakh electric vehicles in FY24, compared to 1.56 lakh electric two-wheelers in the previous fiscal.