Ola Electric reveals IPO price band, aims to raise ₹6,100cr
Bengaluru-based electric two-wheeler manufacturer, Ola Electric, has set the price band for its upcoming initial public offering (IPO) at ₹72-76. The IPO is scheduled to open on August 2 and close on August 6. It comprises a fresh issue of shares worth ₹5,500 crore and an offer for sale (OFS) of over 849 million shares which would be worth about ₹645.56 crore at the upper price band of ₹76.
Promoters and investors to offload stakes in Ola Electric IPO
Promoter Bhavish Aggarwal, the promoter group entity Indus Trust, and other company investors including Alpha Wave, Alpine, Matrix Partners India Investment, Internet Fund III, MacRitchie Investments, SVF II Ostrich (DE), Tekne Private Ventures and Ashna Advisors will be offloading their stakes in the IPO. Bids can be made for a minimum of 195 equity shares and in multiples of 195 shares thereafter. So, you will need ₹14,040 to bid for one lot at lower price band.
IPO proceeds to be utilized for expansion and debt repayment
Ola Electric plans to utilize ₹1,227 crore from the net proceeds of the IPO to expand its battery cell manufacturing plant's capacity from 5 gigawatt hours (GWh) to 6.4 GWh by April 2025. An additional ₹800 crore will be used to repay loans taken by its unit Ola Electric Technologies. The company also intends to invest ₹1,600 crore into research and product development, with a further ₹350 crore allocated toward growth initiatives.
Ola Electric's revenue increases despite rising losses
Ola Electric's revenue from operations rose to ₹5,009.8 crore in fiscal 2024, up from ₹2,630.9 crore in fiscal 2023. This growth was primarily driven by increased sales of the Ola S1 and Ola S1 Pro e-scooters and the commencement of deliveries of the Ola S1 Air and Ola S1 X+ in fiscal 2024. However, the company's loss for the year also increased to ₹1,584.4 crore in fiscal 2024, up from a loss of ₹1,472 crore in fiscal 2023.
Ola Electric dominates Indian electric two-wheeler market
Ola Electric holds a significant share in the electric scooter segment in India, often accounting for over a third of the market. As of July 27, Ola Electric held a 39% market share for the month in the electric two-wheeler market. The book-running lead managers to the offer are Kotak, Citi, BofA Securities, Goldman Sachs, Axis, I-Sec, SBICAP and BOBCAPS while Link Intime India Private Limited is the registrar of the issue.
