Ola Electric IPO: Key Details to Know Before Applying

• Ola Electric IPO is a book-built issue of Rs 6,145.56 crores.
• This upcoming IPO bidding opens on August 2 and closes on August 6, 2024.
• Ola Electric's IPO price is set at Rs 72 - Rs 76 per share.
• The minimum investment amount required for retail investors is Rs 14,820.

Ola Electric IPO: Synopsis

Ola Electric is open for subscription from Friday, August 2, 2024, and closing on Tuesday, August 6, 2024. The price band for this IPO is set to Rs 72 – Rs 76 per share.

Ola Electric is a 100% book-built public issue. The company is offering a fresh issue of 72.37 crore of equity shares amounting up to Rs 5,500 crore and an offer for sale of 8.49 crore of equity shares amounting up to Rs 645.56 crore, this aggregates to total size 80.86 crore of equity shares amounting up to Rs 6,145.56 crore.

The allotment for this new IPO is expected to be finalised on Wednesday, August 7, 2024. This IPO will be listed on the NSE and BSE exchanges on Friday, August 9, 2024.

The IPO is managed by Kotak Mahindra Capital Company Limited, BofA Securities India Limited, Axis Capital Limited, SBI Capital Markets Limited, Citigroup Global Markets India Pvt Limited, Goldman Sachs Securities Pvt Limited, ICICI Securities Limited and BOB Capital Markets Limited, which are the lead managers. The company has appointed Link Intime India Private Limited as the registrar for the issue.

Checkout the Video to Know the Interesting Facts of Ola Electric IPO

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Ola Electric Limited: About the Company

OLA Electric stands as a prominent player in India's electric vehicle (EV) landscape, exclusively dedicated to EVs. They are actively engaged in constructing a comprehensive infrastructure for EVs, encompassing technology and manufacturing capabilities, including cell production. Operations take place at the Ola Future factory, where they craft EVs and essential components such as battery packs, motors, and vehicle frames.

The company strategically focuses on seizing opportunities emerging from the growing trend of electrifying mobility in India. Additionally, they harbor ambitions to venture into international markets, having delivered four products and unveiled six more since their initial product announcement in August 2021. Starting the EV journey with the Ola S1 Pro in December 2021, OLA subsequently rolled out the Ola S1 (September 2022), Ola S1 Air (August 2023), and Ola S1 X+ (December 2023). Further expanding their product line, OLA introduced new EV scooter models, namely Ola S1 X (2 kWh) and Ola S1 X (3 kWh), along with a line-up of motorcycles – Adventure, Diamondhead, Roadster and Cruiser on August 15, 2023.

Ola Electric IPO: Objectives

The company proposes to utilize the Net Proceeds towards funding several objectives, which include capital expenditure for its Subsidiary, OCT, to expand the capacity of its cell manufacturing plant from 5GWh to 6.4GWh, classified as phase 2 under the expansion plan known as the Project. Other objectives are repaying or pre-paying, in full or part, the indebtedness incurred by its Subsidiary, OET, investing in research and product development, incurring expenditure for organic growth initiatives, and supporting general corporate purposes.

Ola Electric IPO: Other Important Details

Time-Table of Ola Electric IPO

Ola Electric IPO: Financial Metrics (Amt in Rs Crore)

Ola Electric Mobility Limited's revenue for the year ended March 2024 was reported at Rs 5,243.27 crore, marking an 88.42% increase compared to March 2023. The profit after tax slightly dropped by -7.63% for the same period. 

Minimum Investment: Lot Size Details

Promoters of Ola Electric Limited and Their Holdings

Bhavish Aggarwal is the promoter of the company. He held 85.77% of the company's shares. However, post-IPO, the change in his shareholding has not yet been disclosed.

Ola Electric: Strength of Company

1. Ola Electric Mobility Limited manufactures a range of electric vehicles and core components.

2. Ola Electric Mobility Limited launched seven new products and announced four since August 2021.

3. The company has an extensive omnichannel distribution network with 870 experience centres and 431 service centres.

4. It has a significant export market with 75% of 2W exports going to Africa, LATAM, and South East Asia in FY 2023.

5. Ola Electric Mobility Limited has a strong focus on R&D, including in-house design and development of EV technologies and components.

FAQs

1.  What are the core details available for Ola Electric's IPO?

Ola Electric IPO is a book-built issue of Rs 6,145.56 crore. This upcoming IPO offering a fresh issue of 72.37 crore equity shares and offer for sale of 8.49 crore of equity share. The allotment for this new IPO is expected to be finalised on Wednesday, August 7, 2024.

2.  How can I apply for the Ola Electric IPO?

The public subscription of this new IPO opens on Friday, August 2 and closes on Tuesday, August 6, 2024. Click here to initiate the application process.

3.  Who are the lead managers for the Ola Electric IPO?

Kotak Mahindra Capital Company Limited, Bofa Securities India Limited, Axis Capital Limited, SBI Capital Markets Limited, Citigroup Global Markets India Private Limited, Goldman Sachs (India) Securities Private Limited, ICICI Securities Limited and Bob Capital Markets Limited were appointed as the book-running lead managers for the IPO.

4.  Who is appointed as the registrar for this IPO?

Link Intime India Private Limited has been appointed as the registrar for this public issue.

5.  How will the net proceeds from the IPO be utilised?

The company plans to use the Net Proceeds for several objectives: expanding OCT's cell manufacturing plant capacity from 5GWh to 6.4GWh (Phase 2 of the Project), repaying or pre-paying OET's debts, investing in research and development, supporting organic growth initiatives, and covering general corporate expenses.

6.  How can I check the allotment status of the IPO?

Investors who applied for IPO can check the allotment status of Ola Electric Limited by visiting here, for further updates, follow Bigul.

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