The IPO of Ola Electric includes a fresh share sale of up to Rs 5,500 crore and offer-for-sale of up to 8,49,41,997 shares by its promoters and existing shareholders amounting to Rs 645.56 crore.
The initial public offering (IPO) of Ola Electric Mobility will open for bidding on Friday, August 2. The electric vehicle (EV) maker is offering its shares in the fixed price band of Rs 72-76 apiece. Interested investors can subscribe to the issue in a lot size of 195 equity shares and its multiples thereafter until Tuesday, August 6.
The Bengaluru-based Ola Electric Mobility, founded in 2017, is an electric vehicle company that primarily manufactures electric vehicles and certain core components for electric vehicles such as battery packs, motors, and vehicle frames at the Ola Futurefactory.
The IPO of Ola Electric includes a fresh share sale of up to Rs 5,500 crore and offer-for-sale (OFS) of up to 8,49,41,997 equity shares by its promoters and existing shareholders amounting to Rs 645.56 crore at the upper end of the price. It is looking to raise Rs 6,145.55 crore via its initial stake sale.
Promoter Bhavish Aggarwal and promoter group’s Indus Trust, along with other shareholders including Alpha Wave Ventures, Alpine Opportunities Fund, Internet Funds III, MacRitchie Investment, Matrix Partners India Investments, SFV II Ostrich (DE), Ashna Advisors and Tekne Private Ventures XV will participate on OFS of the issue.
The net proceeds from the fresh issue shall be utilized towards capital expenditure to be incurred by its subsidiary, OCT for expansion of the capacity of its cell manufacturing plant; repayment or pre-payment, in full or part; investment into research and product development; expenditure to be incurred for organic growth initiatives; and general corporate purposes.
Even before the price band for the issue was officially announced, shares of Ola Electric Mobility were commanding a grey market premium of Rs 15 per share, which is about 20 per cent higher from the upper end of its official price band range.
Since August 2021, Ola Electric has launched seven new products and announced four. The Ola S1 Pro, the first EV model, was delivered in December 2021, followed by the Ola S1, Ola S1 Air, Ola S1 X and Ola S1 X+ in the following years. On August 15, 2023, the company announced new EV models and a range of motorcycles including Diamondhead, Adventure, Roadster, and Cruiser.