Ola Electric IPO news: Ola Electric, a Bengaluru-based electric two-wheeler manufacturer, announced on Monday that its upcoming initial public offering (IPO) will have a price band of Rs 72-76 per share. The IPO, which will be open from August 2 to August 6, consists of a fresh issue of shares worth Rs 5,500 crore and an offer for sale (OFS) of 8,49,41,997 shares.
According to the draft prospectus, the OFS, at the upper price band of Rs 76, would be valued at approximately Rs 645.56 crore.Various stakeholders, including Promoter Bhavesh Aggarwal, the promoter group entity Indus Trust, and several investors such as Alpha Wave, Alpine, Matrix Partners India Investment, Internet Fund III, MacRitchie Investments, SVF II Ostrich (DE), Tekne Private Ventures, and Ashna Advisors, will be selling their stakes through the OFS, according to an ET report.
Investors can bid for a minimum of 195 equity shares and in multiples of 195 shares thereafter. The IPO allocation has been divided as follows: at least 75% for qualified institutional buyers (QIB), up to 15% for non-institutional investors, and up to 10% for retail investors. The floor and cap prices are 7.2 and 7.6 times the face value of the equity shares, respectively.
Ola Electric plans to utilize Rs 1,227 crore of the total net proceeds from the IPO to expand the capacity of its battery cell manufacturing plant, known as Ola Gigafactory, from 5 gigawatt hours (GWh) to 6.4 GWh. The company aims to achieve this increased capacity by the end of April 2025.
Additionally, Rs 800 crore from the total net proceeds will be used to repay loans taken by its unit, Ola Electric Technologies. The firm also intends to invest Rs 1,600 crore in research and product development and allocate Rs 350 crore towards growth initiatives.
The Securities and Exchange Board of India (SEBI) granted approval for Ola Electric’s initial public offering (IPO) in the previous month. As one of the most significant new-age IPOs in 2024, this will mark the first issue by an electric vehicle (EV) startup in India.
In fiscal 2024, Ola Electric’s revenue from operations rose to Rs 5,009.8 crore, a significant increase from Rs 2,630.9 crore in fiscal 2023.
According to data from the government’s transportation portal Vahan, as of July 27, Ola Electric held a 39% market share in the electric two-wheeler segment for the month. Competitors like Bajaj, TVS Motors, and Ather have been increasing their share of sales.
The book-running lead managers for the offer include Kotak, Citi, BofA Securities, Goldman Sachs, Axis, I-Sec, SBICAP, and BOBCAPS, while Link Intime India Private Limited has been appointed as the registrar of the issue.
According to the draft prospectus, the OFS, at the upper price band of Rs 76, would be valued at approximately Rs 645.56 crore.Various stakeholders, including Promoter Bhavesh Aggarwal, the promoter group entity Indus Trust, and several investors such as Alpha Wave, Alpine, Matrix Partners India Investment, Internet Fund III, MacRitchie Investments, SVF II Ostrich (DE), Tekne Private Ventures, and Ashna Advisors, will be selling their stakes through the OFS, according to an ET report.
Investors can bid for a minimum of 195 equity shares and in multiples of 195 shares thereafter. The IPO allocation has been divided as follows: at least 75% for qualified institutional buyers (QIB), up to 15% for non-institutional investors, and up to 10% for retail investors. The floor and cap prices are 7.2 and 7.6 times the face value of the equity shares, respectively.
Ola Electric plans to utilize Rs 1,227 crore of the total net proceeds from the IPO to expand the capacity of its battery cell manufacturing plant, known as Ola Gigafactory, from 5 gigawatt hours (GWh) to 6.4 GWh. The company aims to achieve this increased capacity by the end of April 2025.
Additionally, Rs 800 crore from the total net proceeds will be used to repay loans taken by its unit, Ola Electric Technologies. The firm also intends to invest Rs 1,600 crore in research and product development and allocate Rs 350 crore towards growth initiatives.
The Securities and Exchange Board of India (SEBI) granted approval for Ola Electric’s initial public offering (IPO) in the previous month. As one of the most significant new-age IPOs in 2024, this will mark the first issue by an electric vehicle (EV) startup in India.
In fiscal 2024, Ola Electric’s revenue from operations rose to Rs 5,009.8 crore, a significant increase from Rs 2,630.9 crore in fiscal 2023.
According to data from the government’s transportation portal Vahan, as of July 27, Ola Electric held a 39% market share in the electric two-wheeler segment for the month. Competitors like Bajaj, TVS Motors, and Ather have been increasing their share of sales.
The book-running lead managers for the offer include Kotak, Citi, BofA Securities, Goldman Sachs, Axis, I-Sec, SBICAP, and BOBCAPS, while Link Intime India Private Limited has been appointed as the registrar of the issue.
