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Ola Electric, the Indian electric two-wheeler manufacturer, is set to launch its Initial Public Offering (IPO) on August 2nd, 2024. This IPO, the largest by an Indian company so far in 2024, will close on August 6th. Ola Electric has fixed the price band for the ₹6,146 crore issue at ₹72-76 per share.
The IPO, the first by an electric vehicle manufacturer in India, consists of a fresh issue of ₹5,500 crore and an offer for sale of 8.49 crore shares. Investors can bid for a minimum of 197 shares and multiples thereof. Ola's founder, Bhavish Aggarwal, expressed his desire to make the IPO attractive for all investors, both in India and during private rounds, ensuring broad participation in the company's journey.
The funds raised through the fresh issue are intended for various purposes. ₹800 crore will be used to repay debt of the subsidiary OCT, ₹1,600 crore will be invested in research and product development, and ₹350 crore will be allocated towards organic growth initiatives and general corporate expenses. The remaining amount will be utilized for working capital expenditure.
The offer for sale in the IPO will see shares offered by promoter Bhavish Aggarwal, promoter entity Indus Trust, and several other investors including Alpha Wave Ventures II, Alpine Opportunity Fund IV, DIG Investment, Internet Fund, MacRitchie Investments, Matrix Partners India Investment, SVF II Ostrich (DE), and Tekne Private Ventures XV.
Ola Electric, a pure electric vehicle player in India, boasts vertically integrated technology and manufacturing capabilities for EVs and EV components. The company's revenue from operations saw a significant 90.42% increase in FY24, reaching ₹5,009.8 crore, compared to FY23. However, losses also widened to ₹1,584.4 crore in FY24, compared to ₹1,472 crore in the previous year.
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 are the bankers responsible for the IPO.