 |
|
Ola Electric Mobility Ltd., a prominent player in India's electric vehicle market, has set the price band for its upcoming initial public offering (IPO) between ₹72 and ₹76 per share. This ₹5,500 crore issue is scheduled to open for subscription on August 2nd and will conclude on August 6th. The IPO comprises a fresh issuance of equity shares along with an offer for sale (OFS) of up to 8.4 crore shares, each carrying a face value of ₹10.
Among the selling shareholders participating in the OFS is the company's promoter, Bhavish Aggarwal. Other notable investors offloading shares include SoftBank, Temasek, and Matrix Partners India. The IPO has allocated 75% of the offering to institutional investors, reserving 15% for non-institutional investors and 10% for retail investors. Investors can place bids for a minimum of 195 equity shares and in multiples of 195 thereafter. Ola Electric employees are also eligible to participate in the IPO and will receive a discount of ₹7 per share on the offer price.
Ola Electric specializes in electric vehicles (EVs) within India, boasting integrated technology and manufacturing capabilities for EVs and their components. The company has successfully delivered seven EV products to the market and has announced an additional four new offerings. Ola Electric's distribution network encompasses 870 experience centers and 431 service centers across India, complementing its online presence through its website, as of March 31, 2024. Despite its presence and product portfolio, Ola Electric has incurred losses in recent fiscal years. The company recorded a loss of ₹1,584 crore in financial year 2024, exceeding the ₹1,472 crore loss reported in financial year 2023.
Ola Electric plans to allocate ₹1,600 crore of the net proceeds from the IPO towards research and development (R&D) investments. However, the company acknowledges that there are inherent risks associated with R&D investments, stating in its risk factors: "We cannot assure you that such investment into research and development will proceed as planned and result in creation of tangible assets or achieve results as anticipated." This IPO represents a significant step for Ola Electric, seeking to capitalize on the growing demand for EVs in India and further expand its operations. The success of the IPO will be crucial for the company's future growth and its ability to navigate the competitive EV landscape in India.