Ola Electric Mobility Ltd. will launch its initial public offering (IPO) for bids starting Friday, August 2. According to an official statement, the company has set its share price range between ₹72-₹76.
Interested investors can join the offering by buying at least 195 shares. Also, they can buy more shares in multiples of 195 until Tuesday, August 6. Eligible employees can participate in the IPO as well. Moreover, they will receive a ₹7 discount per share on the offer price.
Ola Electric IPO Details
The Ola Electric IPO involves a new share sale of up to ₹5,500 crore. Additionally, it includes an offer-for-sale (OFS) of around 8.49 crore equity shares by promoters and existing shareholders, valued at ₹645.56 crore at the highest price. The company aims to raise a total of ₹6,145.55 crore through this initial share offering.
Founder Bhavish Aggarwal and promoter group’s Indus Trust will be selling shareholders. Other shareholders joining the OFS include Alpha Wave Ventures, Temasek, Alpine Opportunities Fund, Internet Funds III, MacRitchie Investment, Matrix Partners India Investments, SoftBank, etc.
Institutional investors will get 75% of the IPO, non-institutional investors will get 15%, and retail investors can apply for the remaining 10%.
As per a Reuters report, Fidelity, Nomura, Norges Bank, and various Indian mutual funds will participate in the IPO. Valued at approximately $740 million, it will be the first IPO by an Indian electric vehicle manufacturer. Fidelity plans to bid around $75 million, and both Nomura and Norges Bank will bid $100 million each. Moreover, SBI, HDFC, UTI, and Nippon India are likely to place a bid of a total of over $700 million.
About the Ola Electric Mobility Ltd.
Ola Electric focuses only on electric two-wheelers in India, with its own technology and manufacturing for EVs and their parts.
The company has rolled out seven new products and announced plans for four more since August 2021. Ola delivered its first EV model, the S1 Pro, in December 2021. Furthermore, the company introduced Ola S1, Ola S1 Air, Ola S1 X, and Ola S1 X+ in the following year. Interestingly, Ola Electric unveiled new EV models and a lineup of motorcycles like the Diamondhead, Roadster, and Cruiser.
As of March 31, 2024, Ola Electric has 870 experience centers and 431 service centers. Notably, the company has been operating at a loss and reported a loss of ₹1,584 crore in FY2024. Now, this was more than the ₹1,472 crore loss it had in FY2023.
Ola Electric plans to allocate ₹1,600 crore of the net proceeds towards research and development efforts. Moreover, the company cautioned in its risk factors that it cannot guarantee this investment will follow the planned course or generate the expected tangible assets and outcomes.
