Ola Electric, the electric vehicle company led by Bhavish Aggarwal, is set to launch its initial public offering (IPO) on August 2. The IPO, valued at Rs 5,500 crore, will see a price band of Rs 72-76 per share. The subscription period will begin on August 3 and end on August 6. A significant portion of the IPO, amounting to Rs 645.96 crore (at the upper price band), will be dedicated to an offer for sale (OFS) component, involving the sale of up to 84.94 million shares. This brings the total issue size to Rs 6,145.96 crore, potentially pushing Ola Electric’s market cap to nearly Rs 33,500 crore. Notably, around 10 per cent of the IPO will be reserved for retail investors.
Promoters Bhavish Aggarwal and Indus Trust will be selling 3.79 crore and 41.79 lakh shares, respectively, during the IPO. Other investors in the EV firm, including SVF II Ostrich (DE) LLC, Alpha Wave Ventures II LP, Alpine Opportunity Fund VI LP, Internet Fund III Pte, Matrix Partners India Investments III LLC, and Ashna Advisors LLP, will also offload their shares through the OFS route.
Ola Electric intends to utilize approximately Rs 1,227 crore from the IPO proceeds to expand the capacity of its cell manufacturing plant. The company will also allocate IPO funds towards research, product development, and overall business expansion.
In FY24, Ola Electric reported a net loss of Rs 1,584.4 crore, representing a 7.6 per cent increase compared to the previous fiscal year’s loss of Rs 1,472.1 crore. However, the company experienced a significant surge in its operating revenue, rising to Rs 5,009.8 crore in FY24 from Rs 2,630.9 crore in FY23, as per its red herring prospectus (RHP).
