Ola Electric, the electric two-wheeler manufacturer, is all set to make history with its Initial Public Offering (IPO) scheduled to open for subscription on August 2, 2024. This IPO is poised to become the largest by an Indian company in 2024.
Key Details
- IPO Dates: The subscription window for Ola Electric’s IPO will be open from August 2 to August 6, 2024.
- Valuation: The company aims to raise INR 6,146 crore through the IPO, with shares priced between INR 72 and INR 76 per share. This valuation places Ola Electric at approximately $4.2 billion to $4.4 billion.
- Issue Composition: The IPO comprises a fresh issue of INR 5,500 crore and an offer for sale of 8.49 crore shares. Bids can be made for a minimum of 197 shares and multiples thereafter.
- Investor Community: Ola’s founder, Bhavish Aggarwal, emphasized the importance of attracting a wide spectrum of investors. The response has been encouraging, reflecting the company’s commitment to Indian investors.
- Use of Proceeds: The funds raised will be allocated for various purposes:
- Working Capital: Funding working capital expenditure of arm OCT.
- Debt Repayment: Repaying the subsidiary’s debt.
- Research and Development: Investing INR 1,600 crore in research and product development.
- Organic Growth: Allocating INR 350 crore for organic growth initiatives and general corporate expenses.
Ola Electric’s Journey
Ola Electric is a pure electric vehicle (EV) player in India, focusing on vertically integrated technology and manufacturing capabilities for EVs and EV components. In FY24, the company’s revenue from operations surged by 90.42% to INR 5,009.8 crore compared to FY23. However, losses widened to INR 1,584.4 crore in FY24 from INR 1,472 crore in the previous year.
Investor Participation
Promoter Bhavish Aggarwal, along with other entities, will offer shares as part of the offer for sale in the IPO. The banking consortium handling the issue includes Kotak Mahindra Capital, Citigroup Global Markets India, BofA Securities India, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, SBI Capital Markets, and BOB Capital Markets.
Also Read: Ola Electric motorcycle could launch in India by FY2026