In its first public offering (IPO) valued at Rs 5,500 crore, homegrown electric vehicle company Ola Electric plans to offer shares in the price range of Rs 72–76. The IPO will open for subscription on August 2 and finish on August 6.
Retail investors will be allocated about 10% of the IPO.
An offer for sale (OFS) component of up to 84.94 million, or Rs 645.96 crore (at the higher price band), will be included in the IPO.
With this, Ola Electric’s market capitalization would approach Rs 33,500 crore, with the total issue size being Rs 6,145.96 crore.
The promoters of Ola Electric, Bhavish Aggarwal and Indus Trust, plan to sell 41.79 lakh and 3.79 crore shares, respectively.
SVF II Ostrich (DE) LLC, Alpha Wave Ventures II LP, Alpine Opportunity Fund VI LP, Internet Fund III Pte, Matrix Partners India Investments III LLC, and Ashna Advisors LLP are among the other investors in the EV business that will also sell their shares through the OFS.
Ola Electric plans to expand its cell manufacturing plant’s capacity by spending about Rs 1,227 crore of the money it raised during its initial public offering.
The funds from the IPO will also be used by the EV company for business growth, product development, and research.
Ola Electric’s net loss increased to Rs 1,584.4 crore in FY24 from Rs 1,472.1 crore in FY23, a 7.6% increase.
According to its red herring prospectus (RHP), the company recorded a 90% increase in operating revenue, from Rs 2,630.9 crore in FY23 to Rs 5,009.8 crore.
