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IPO-Bound Ola Electric Becomes First Indian EV Company To Get PLI Approval

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Reports indicate that Ola Electric, heading for an IPO, has emerged as the inaugural Indian electric two-wheeler company to secure the Centre’s Production Linked Incentive (PLI) approval, surpassing contenders like Hero MotoCorp, TVS Motor Company, and Bajaj Auto.

The authenticity of this development couldn’t be independently confirmed by BT. Introduced in 2021, the PLI scheme aims to bolster domestic manufacturing of automotive technology products, particularly electric vehicles, providing incentives to manufacturers to make their offerings more accessible in the Indian market.

According to sources, Ola Electric received the PLI approval in under four months, setting a swift record. Union Minister Mahendra Nath Pandey mentioned in a parliamentary response in December about the commencement of incentive disbursements under the ₹26,000 crore production-linked incentive scheme for automobiles and auto components in the upcoming fiscal year.

Furthermore, Ola Electric stands out as the first EV firm in India poised for an IPO, marking the initial public offering in the automobile sector since Maruti Suzuki went public nearly two decades ago in 2003.

The company intends to raise Rs 5,500 crore through new shares to support its cell manufacturing plant expansion, subsidiary debt repayments, and research and development initiatives. With backing from SoftBank and Temasek, Ola Electric was valued at $5.4 billion in a recent funding round reported by Reuters in September.

Capturing a dominant 32% share in India’s electric two-wheeler landscape, Ola Electric competes with TVS Motor, Bajaj Auto, and Ather Energy, as per data from the Society of Manufacturers of Electric Vehicles.

Meanwhile, Ather, supported by Singapore’s GIC, also plans for an Indian listing, boasting a market valuation of $739.4 million based on Tracxn investment tracker data.

Ola Electric’s IPO entrance coincides with India witnessing a record-breaking 213 IPOs in the year, featuring companies like Tata Technologies and JSW Infrastructure, even as benchmark indexes hit unprecedented highs.