Ola Electric Mobility Ltd has announced a price band of ₹72-76 per share for its upcoming initial public offering (IPO), set to open for subscription on August 2 and close on August 6. The IPO includes a fresh issue worth ₹5,500 crores and an offer for sale (OFS) of up to 84.94 million shares, totalling approximately ₹645.96 crores at the upper price band. The total issue size will be around ₹6,145.96 crore, giving the company a market capitalization of approximately ₹33,500 crore.
Key promoters, including Bhavish Aggarwal and Indus Trust, are set to sell 3.79 crore and 41.79 lakh shares, respectively, as part of the OFS. Among the investors, SVF II Ostrich (DE) LLC, holding a 21.98% stake in the company, will offload 2.38 crore shares.
The proceeds from the fresh issue will be used to fund a few key initiatives:
₹1,227.64 crores for increasing the cell manufacturing capacity at the Ola Gigafactory from 5 GWh to 6.4 GWh.
₹800 crore for the repayment of Ola Electric’s subsidiary OET which had consolidated debts of ₹996.67 crore as of June 15, 2023.
₹1,600 crore for research and development of products.
₹350 crore for business growth through inorganic expansion.
Ola Electric is a startup that develops electric vehicles and major components like battery packs and motors. It delivered its first EV scooter in December 2021. Revenue has been strong; operations spiked to ₹5,009.8 crores in FY24 from ₹2,630.9 crores a year ago—a growth of 90.4%. However, the net loss deepened to ₹1,584.4 crore from ₹1,472 crore reported during FY23. The company—operating an omnichannel D2C distribution network with 870 experience centres and 431 service centres—sold 3.29 lakh units in FY24, more than doubling from the previous year’s sales of 1.56 lakh units. As of FY24, Ola Electric accounted for nearly 35% of the E2W segment; during the previous year, this was up to 21%.
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Source: MoneyControl
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