The opening of Ola Electric’s initial public offering (IPO) today represents a noteworthy chance for primary market investors. Ola Electric is the largest electric two-wheeler manufacturer in India. The largest IPO of the year thus far is this one.
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New Delhi: The ₹6,146 crore Ola Electric IPO is scheduled to launch today. The deadline for subscriptions is August 6. Notably, this is an Indian electric vehicle company’s first initial public offering. The offering consists of 8.49 crore shares up for offer for sale (OFS) and new shares valued at ₹5,500 crores. In an effort to appeal to a larger spectrum of investors, the company has set a price range of ₹72–76 per share. The market worth in the upper price band is roughly ₹33,522 crores, which is less than the ₹48,000 crores it was valued at during its most recent funding round in September.
The company’s shares are trading at a premium of ₹15 on the black market. At the upper band, this corresponds to a 20% premium over the issue price. Bids may be placed in multiples of 195 shares, with lots of 195 shares available for purchase. 15% of the IPO is reserved for non-institutional investors, 10% is for retail investors, and 75% is for qualified institutional buyers (QIB). The money received will go toward general corporate purposes, research and development, working capital requirements, and debt repayment for subsidiary companies.
About the Business
Ola Electric is a 2017-founded company that specializes in electric cars and associated technology. Its factories make motors, battery packs, vehicle frames, and electric vehicles. It is India’s top electric two-wheeler manufacturer. The business unveiled four motorbike models on August 15, 2023, with delivery scheduled to start in the first half of 2026. By the end of March 2024, Ola Electric had sold 506,817 Ola S1 and Ola S1 Pro scooters combined. In comparison to FY 2023, the company’s operational revenue climbed by 90.42% to ₹5,009.8 crores in FY 2024, but its losses increased to ₹1,584.4 crores from ₹1,472 crores in the same year.
Raising ₹2,763 Crores
Axis Capital, ICICI Securities, SBI Capital Markets, BOB Capital Markets, Citigroup Global Markets India, BofA Securities India, Goldman Sachs (India) Securities, and Kotak Mahindra Capital are among the bankers for this issuance. The company received ₹2,763 crores from anchor investors prior to the IPO opening by issuing 36.35 crore shares at ₹76 per share. Nomura, Fidelity, HDFC MF, Franklin Templeton, HDFC Life Insurance, JM Financial MF, BNP Paribas MF, and SBI MF are among the anchor investors.
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