Ola Electric Mobility, the manufacturer of electric scooters, has announced the IPO prices. The subscription will begin on August 2, 2024. The company aims to raise about Rs 5,500 crore through this latest issue. You can also submit bids for the anchor round starting from August 1. The company states the share price to be Rs. 72-76.
Retail investors have the opportunity to submit their bids between August 2 and August 6. The EV company will likely be listed on the stock exchange on August 9. Ola Electric has become the first Indian electric two-wheeler company to launch an IPO.
The Ola Electric IPO will start on August 2 and end on August 6. Anchor investors can submit bids on August 1. As part of the issue, promoters and investors will sell up to Rs. 5,500 crore in new shares and 8.49 crore shares in the offer for sale. In this IPO, investors can apply for a maximum of 195 shares at a price of Rs.14,820. Employees of the company can also participate in this IPO and will receive a Rs. 7 discount on each share they buy.
Ola Electric has revealed that Rs 1,600 crore of the funds raised in the IPO will be used for research and other development activities. The company will allocate Rs. 1,227 crore to expand the subsidiary dedicated to cell manufacturing, and will use another Rs. 800 crore to repay loans.
India’s first EV company to be listed. We’re going public! #OlaElectricIPO https://t.co/mH8oqLRgwf
— Ola Electric (@OlaElectric) August 9, 2024
The Ola Electric IPO Details, Market Value:
Ola Electric, backed by SoftBank, is expected to have a valuation of around Rs 4.5 billion in its upcoming IPO. This valuation is approximately 18% lower than its previous funding round of 5.5 billion. On December 22, 2023, Ola Electric submitted its Draft Red Herring Prospectus (DRHP) to SEBI. By June 20, it had received approval from the market regulator for its IPO. Notably, Ola Electric has set a record as the first two-wheeler electric company to receive approval for an IPO.
Shareholders & Sales:
In its IPO, founder Bhavish Agarwal plans to sell 4.74 crore shares (3.48% stake). Other stakeholders taking part in the sale include Indus Trust, Alpine Opportunities Fund, DIG Investments, Internet Fund-3 (Tiger Global), MacRitchie Investments, Matrix Partners, SoftBank Vision Fund, Alpha Wave Ventures, and Techne Private Ventures.
Ola Electric manufactures key components such as EVs, battery packs, motors, and vehicle frames at its Futurefactory in Tamil Nadu. It is expanding to become the world’s largest two-wheeler plant with an annual production capacity of 10 million units. Ola Electric is growing rapidly in the electric two-wheeler segment by consistently offering top-notch customer service and the latest technology.
Plans:
The company has established a Gigafactory in Tamil Nadu for the production of lithium-ion batteries. It will have a capacity to generate 5 GW (Gigawatt) per hour. Ola Electric plans to further increase its capacity to 100 GW per hour soon. Ola Electric is a prominent player in India’s expanding electric vehicle market, competing with other EV manufacturers such as Aether Energy, Bajaj, and TVS Motor Company in the electric vehicle segment.