Ola Electric Mobility, the electric two-wheeler company spearheaded by Bhavish Aggarwal, has officially announced the highly anticipated date for its initial public offering (IPO). The IPO will commence on August 2nd and conclude on August 6th, with the price band for the company’s maiden public issue expected to be revealed on Monday.
The IPO structure, outlined in the prospectus, includes a fresh issue of equity shares amounting to ₹5,500 crore and an offer for sale (OFS) of 8.49 crore equity shares by existing promoters and investors. Under the OFS, Ola Electric founder Bhavish Aggarwal will offload almost 3.8 crore shares. The bidding for anchor investors will commence for a single day on August 1st, as stated in the red herring prospectus (RHP).
The proceeds generated from the IPO will be strategically allocated to key areas, with a significant portion earmarked for capacity expansion of Ola Electric’s cell manufacturing plant and for accelerating research and development (R&D) efforts.
Ola Electric’s prospectus reveals that the company intends to utilize ₹1,227.6 crore from the IPO proceeds to expand its cell manufacturing plant capacity from 5 GWh to 6.4 GWh. Furthermore, ₹1,600 crore will be dedicated to research and product development initiatives, while another ₹800 crore will be directed towards debt repayment. An additional ₹350 crore will be used to fund organic growth initiatives.
The company’s RHP highlights that the first two phases of its Ola Gigafactory, situated in Krishnagiri district, Tamil Nadu, will be financed through internal accruals and long-term borrowings secured by its subsidiary, Ola Cell Technologies Pvt Ltd (OCT).
