The price band of each Ola Electric share is fixed between Rs 72 to Rs 76 per share.
Ola Electric is all set to open its shares up for public issue, with subscriptions opening on August 2 and closing on August 6. The company has fixed the price band of its upcoming initial public offering (IPO) in the range of Rs 72 to Rs 76 per share. At the upper end of the price band, the electric two-wheeler could be eyeing a Rs 6,145.56 crore issue, which includes Rs 5,500 crore from the fresh issue of shares and Rs 645.56 crore from the offer for sale.
- CEO Bhavish Aggarwal is currently the largest shareholder
- Ola Electric is the market leader in EV sales
- Rs 800 crore from fresh issue will be used for debt repayment
Up to 10 percent of the issue will be available for retail individual bidders while 75 percent of the offer has been reserved for qualified institutional buyers and 15 percent for non-institutional buyers. Investors can bid for a minimum of 197 equity shares and in multiples of 197 equity shares after that.
Currently, Bhavish Aggarwal is the largest shareholder in the company with a stake of 36.9 percent, followed by SoftBank’s SVF II Ostrich (DE) LLC with a 22 percent stake. Aggarwal and promoter group Indus Trust plan to offload up to 3,79,15,211 crore shares and 41,78,996 shares, respectively. SVF II will sell 2,38,57,268 shares, according to the DRHP.
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Ola Electric is the market leader in the electric two-wheeler segment with over 35 percent market share, competing with Bajaj Auto, TVS Motor, Ather and Hero MotoCorp. The automaker secured regulatory approval for the IPO earlier last month and plans to use Rs 1,226.43 crore from its net proceeds for cell manufacturing at its upcoming Giga factory in Krishnagiri, Tamil Nadu. The company will also use Rs 1,600 crore for research and product development, and Rs 800 crore for debt repayment.
In FY23, Ola Electric reported a consolidated net loss of Rs 1,472.08 crore and the company said it might continue to report losses in the near term, considering higher operating expenses on account of product and sales expansion. Ola Electric’s total outstanding borrowing on a consolidated basis stood at Rs 1,768.82 crore, as of October 31, 2023.
The electric vehicle (EV) growth story in India has not slowed down, except for the aberrations arising out of seasonal fluctuations in demand and subsidy challenges, noted Bhavish Aggarwal, CEO of India’s largest EV scooter manufacturing company, Ola Electric.
Aggarwal emphasised that EV growth is in its absolute early stages. “When we launched our product three years ago, the EV space in India was nascent. Since then, EV penetration, particularly in the scooter segment, has surged to nearly 15 percent.” he highlighted during a pre-IPO press conference.
“There will be cyclical ups and downs, subsidy changes, or seasonal changes,” added Aggarwal. He was speaking during a pre-IPO conference meeting with the media on Monday. Aggarwal’s statement was in response to a question about the apparent slowdown in the EV growth rate as against what was earlier anticipated.
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