The electric two-wheeler company Ola Electric, situated in Bengaluru, declared on Monday that the pricing range for its impending initial public offering (IPO). It will be between Rs 72 and Rs 76 per share. Continue reading further to know more about the company, its opening and closing date for IPO subscription, and much more.
OLA Electric IPO: Key Details And Dates
The OLA Electric initial public offering (IPO) is a book-built issue of Rs 6,145.56 crores that combines an offer to sell 8.49 crore shares and a new issue of 72.37 crore shares. August 2, 2024, is when the IPO will open for subscription, and it will end on August 6, 2024. It is anticipated that the allocation will be completed on August 7, 2024. The BSE and NSE will list the IPO, with a tentative listing date of Friday, August 9, 2024. With a minimum number of lots of 195 shares for an application and ₹14,820 for retail investors, the price band is set at ₹72 to ₹76 per share. For both sNII and bNII, the minimum lot size investment is ₹207,480 for 14 lots (2,730 shares) and ₹1,007,760 for 68 lots (13,260 shares).
Key Stakeholders And Allocation Details
According to an ET report, several interested parties will be offering their stakes through the OFS, which includes promoter Bhavesh Aggarwal, the promoter group entity Indus Trust, and some investors like Alpha Wave, Alpine, Matrix Partners India Investment, Internet Fund III, MacRitchie Investments, SVF II Ostrich (DE), Tekne Private Ventures, and Ashna Advisors. Following the minimum of 195 equity shares, investors may bid in multiples of 195 shares.
The allocation for the IPO is as follows:
- qualified institutional buyers (QIBs) will receive at least 75% of the allocation
- non-institutional investors will receive up to 15%
- retail investors will receive up to 10%
Expansion, Debt Repayment, And R&D Plans
Of the total net proceeds from the IPO, Ola Electric intends to use Rs 1,227 crore to increase the capacity of its Ola Gigafactory, a plant that produces battery cells, from 5 gigawatt hours (GWh) to 6.4 GWh. By the end of April 2025, the company hopes to have this expanded capacity in place.
In addition, its business, Ola Electric Technologies, will utilize Rs 800 crore of the entire net revenues to pay back creditors. The company also plans to devote Rs 350 crore to growth projects. Rs 1,600 crore will be devoted to research and product development.
Ola Electric’s IPO Approved By SEBI
Ola Electric’s initial public offering (IPO) was approved by the Securities and Exchange Board of India (SEBI) last month. This would be the first offering by an electric vehicle (EV) company in India. Further, it will be one of the biggest new-age IPOs in 2024.
Ola Electric’s operating revenue increased significantly from Rs 2,630.9 crore in fiscal 2023 to Rs 5,009.8 crore in fiscal 2024. Ola Electric had a 39% market share in the electric two-wheeler category as of July 27, according to data from the government’s transportation portal Vahan. Rivals in the market, including TVS Motors, Ather, and Bajaj, have been gaining market share.
Lead Managers And Registrar
For the OLA Electric IPO, there are some book-running principal managers. These are 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. The registrar is Link Intime India Private Ltd.
About Ola Electric
Indian producer of electric vehicles (EVs) is Ola Electric Mobility. Additionally, the firm produces electric vehicle (EV) components at its Ola Futurefactory, including motors, battery packs, and vehicle chassis. Technology and research and development (R&D) are further components of its business plan. Ola Electric carries out research and development in the US, UK, and India. In Tamil Nadu, India’s Krishnagiri and Dharmapuri districts, the business is building an EV hub. The co-located suppliers in the Krishnagiri district, the upcoming Ola Gigafactory, and the current Ola Futurefactory are all part of this nexus.
The Ola Futurefactory is where the business assembles its electric scooters, using a combination of parts that are created internally and parts that are purchased from external sources, such as cells. Bengaluru, India is home to Ola’s Battery Innovation Centre (BIC). This center is in charge of manufacturing process development and the advancement of cell and battery technology. It was Established in 2017. The Director of management is Mr. Bhavish Aggarwal.
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