Ola Electric IPO to raise Rs 6,145.56 crore, with a price band of Rs 72-76 per share.
Ola Electric, a leader in India’s electric vehicle (EV) market, is set to go public with its Initial Public Offering (IPO) from August 2 to August 6. The price band for the IPO has been set between Rs 72 and Rs 76 per share. At the upper end, the company could raise approximately Rs 6,145.56 crore, with Rs 5,500 crore from new shares and Rs 645.56 crore from an offer for sale.
Key Highlights:
- IPO subscription opens August 2 and closes August 6.
- Price band set between Rs 72 to Rs 76 per share.
- Rs 6,145.56 crore expected to be raised at the upper band.
- 10% reserved for retail investors, 75% for qualified institutional buyers.
- Funds to be used for debt repayment, cell manufacturing, and R&D.
Ola Electric IPO Details:
Currently, Bhavish Aggarwal, the CEO of Ola Electric, holds the largest stake in the company at 36.9%. Other major shareholders include SoftBank’s SVF II Ostrich (DE) LLC with a 22% stake. As part of the IPO, Aggarwal and the Indus Trust plan to sell a combined total of over 4.2 crore shares, while SVF II will offload around 2.38 crore shares.
Ola Electric dominates the electric two-wheeler segment with over 35% market share, competing against companies like Bajaj Auto, TVS Motor, Ather, and Hero MotoCorp. The company recently received regulatory approval for its IPO and intends to allocate Rs 1,226.43 crore from the net proceeds towards setting up a cell manufacturing unit at its upcoming Giga factory in Krishnagiri, Tamil Nadu. Additionally, Rs 1,600 crore will be invested in research and product development, and Rs 800 crore will be used to repay debt.
Despite reporting a consolidated net loss of Rs 1,472.08 crore in FY23, Ola Electric continues to invest heavily in expanding its product range and sales. As of October 31, 2023, the company had total outstanding borrowings of Rs 1,768.82 crore. Bhavish Aggarwal emphasized that the EV market in India is still in its early stages and will experience cyclical changes, including subsidy adjustments and seasonal fluctuations.
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