Ola Electric IPO, which will run from August 2 to August 6, is targeting to raise ₹6,146 crore with shares priced between ₹72 and ₹76 each. The funds raised are intended for working capital, debt repayment, and research purposes. The IPO features contributions from founder Bhavish Aggarwal as well as notable investors. The company experienced significant changes in both revenue and losses during FY24.
The Ola Electric IPO is a book-built issue valued at ₹6,145.56 crore. It consists of a fresh issue of 72.37 crore shares totaling ₹5,500.00 crore, and an offer for sale of 8.49 crore shares amounting to ₹645.56 crore.
The IPO will be open for subscription from August 2, 2024, to August 6, 2024. Allotments are expected to be finalized on August 7, 2024, with the shares listed on BSE and NSE on August 9, 2024.
The price band for the IPO is set between ₹72 and ₹76 per share. The minimum lot size for applications is 195 shares, with a minimum investment of ₹14,820 for retail investors. For small and new institutional investors (sNII), the minimum lot size is 14 lots (2,730 shares), requiring an investment of ₹207,480, while for big institutional investors (bNII), it is 68 lots (13,260 shares), totaling ₹1,007,760.
Kotak Mahindra Capital Company Limited, Bofa Securities India Limited, Axis Capital Limited, SBI Capital Markets Limited, Citigroup Global Markets India Private Limited, Goldman Sachs (India) Securities Private Limited, ICICI Securities Limited, and Bob Capital Markets Limited are the book-running lead managers for the IPO. Link Intime India Private Ltd is the registrar for the issue.
About Ola Electric Mobility Limited
Founded in 2017, Ola Electric Mobility Limited is a leading electric vehicle company specializing in the production of electric vehicles and essential EV components, including battery packs, motors, and vehicle frames, at its Ola Futurefactory.
Since August 2021, Ola Electric has launched seven new products and announced four additional models. The Ola S1 Pro, the company’s first electric vehicle, was delivered in December 2021. It was followed by the Ola S1, Ola S1 Air, Ola S1 X, and Ola S1 X+ in subsequent years. On August 15, 2023, Ola Electric introduced new EV models and motorcycles, including the Diamondhead, Adventure, Roadster, and Cruiser.
As of October 31, 2023, the company operates a comprehensive omnichannel distribution network across India, featuring 870 experience centers and 431 service centers (with 429 service centers located within experience centers), in addition to its online platform.
In FY 2023, approximately 75% of the company’s two-wheeler exports from India were directed towards Africa, LATAM, and Southeast Asia, with limited domestic supply of electric two-wheelers.
Objectives of the Ola Electric IPO
The company intends to use the net proceeds from the IPO for the following purposes:
- Capital expenditure for its subsidiary, OCT, to expand the capacity of its cell manufacturing plant from 5GWh to 6.4GWh, as part of phase 2 of the expansion plan (the “Project”).
- Repayment or pre-payment, either in full or in part, of debt incurred by its subsidiary, OET.
- Investment in research and product development.
- Expenditure related to organic growth initiatives.
- General corporate purposes.
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