The company is planning to raise upto Rs 5,500 crore through a fresh issue of shares. At the upper end of the price band, the total issue size could be Rs 6,145.56 crore.
29 Jul 2024 | 2130 Views | By Kiran Murali
Ola Electric Mobility Ltd today fixed the price band of its upcoming initial public offering(IPO) in the range of Rs 72 to Rs 76 per share. At the upper end of the price band, the electric two-wheeler could be eyeing Rs 6,145.56 crore issue, which includes Rs 5,500 crore ...
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Ola Electric Mobility Ltd today fixed the price band of its upcoming initial public offering (IPO) in the range of Rs 72 to Rs 76 per share. At the upper end of the price band, the electric two-wheeler could be eyeing Rs 6,145.56 crore issue, which includes Rs 5,500 crore from the fresh issue of shares and Rs 645.56 crore from the offer for sale.
The issue will open for subscription on August 2 and close on August 6. Through the offer for sales component, the company’s existing investors, including founder Bhavish Aggarwal, will sell up to 9,51,91,195 shares of face value of Rs 10 each. At the lower end, the IPO could be worth up to Rs 611.58 crore.
Up to 10% of the issue will be available for retail individual bidders while 75% of the offer has been reserved for qualified institutional buyers and 15% for non-institutional buyers. Investors can bid for a minimum of 197 equity shares and in multiples of 197 equity shares after that.
Currently, Aggarwal is the largest shareholder in the company with a stake of 36.9%, followed by SoftBank’s SVF II Ostrich (DE) LLC with a 22% stake. Aggarwal and promoter group Indus Trust plan to offload up to 3,79,15,211 crore shares and 41,78,996 shares, respectively. SVF II will sell 2,38,57,268 shares, according to the DRHP.
Ola Electric is the market leader in the electric two-wheeler segment with over 35% market share, competing with Bajaj Auto, TVS Motor, Ather and Hero MotoCorp. The automaker secured the regulatory approval for the IPO earlier last month and plans to use Rs 1,226.43 crore from its net proceeds for cell manufacturing at its upcoming Giga factory in Krishnagiri, Tamil Nadu. The company will also use Rs 1,600 crore for research and product development, and Rs 800 crore for debt repayment.
In FY23, Ola Electric reported a consolidated net loss of Rs 1,472.08 crore and the company said it might continue to report losses in the near term, considering higher operating expenses on account of product and sales expansion. Ola Electric’s total outstanding borrowing on a consolidated basis stood at Rs 1,768.82 crore, as of October 31, 2023.
Recently, Hyundai Motor India also filed a DRHP of an IPO that only has an offer-for-sale component. Its South Korean parent company Hyundai Motor Company plans to dilute up to 17.5% stake in the wholly-owned India unit by selling up to 14,21,94,700 shares in the offering. ENDS
Read More: Ola Electric to launch first electric motorcycle in first half of FY26