Ola Electric Sets IPO Price Range, Seeks ₹5,500 Crore
IPO-bound Ola Electric Mobility Ltd. has disclosed a price band of ₹72 to ₹76 per share in its latest filing. The company aims to raise ₹5,500 crore through the equity market, with the subscription opening on August 2 and closing on August 6.
The initial public offering encompasses a fresh issue of equity shares and an offer for sale (OFS) of up to 8.4 crore shares with a face value of ₹10 each. Notably, prominent figures such as promoter Bhavish Aggarwal and investors like SoftBank, Temasek, and Matrix Partners India are among the selling shareholders.
In terms of share allocation, 75% of the IPO has been reserved for institutional investors, 15% for non-institutional investors, and 10% for retail investors. A minimum bid for 195 equity shares is allowed, with subsequent bids in multiples of 195. Additionally, eligible employees can participate in the IPO, obtaining a ₹7 per share discount on the offer price.
Ola Electric has established itself as a major player in the Indian electric vehicle (EV) segment, showcasing integrated technology and manufacturing capabilities for EVs and their components. The company has introduced seven products and announced plans for four new ones, demonstrating a strong commitment to innovation and expansion.
Despite its robust presence in the market, Ola Electric has faced financial challenges, accruing a notable loss of ₹1,584 crore in the fiscal year 2024, surpassing the ₹1,472 crore loss reported in the previous fiscal year. Looking ahead, the company intends to allocate ₹1,600 crore of the net proceeds from the IPO to fund research and development initiatives. However, Ola Electric has acknowledged the inherent uncertainties associated with such investments, highlighting the possibility of divergent outcomes.
With the IPO pricing set and the stage set for a substantial fundraising drive, Ola Electric is poised to make significant strides in the burgeoning Indian EV landscape.
