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Ola Electric, the SoftBank-backed Indian electric scooter manufacturer, is poised to launch one of India's largest IPOs this year, with its share price set between ₹72 and ₹76 per share. This move marks a significant milestone for the company, as it becomes the first Indian electric vehicle maker to enter the stock market. Ola Electric's IPO is estimated to raise approximately $740 million, solidifying its position as a major player in India's rapidly growing e-scooter market.
The company's presence in the Indian e-scooter market is significant, with Ola Electric leading the charge as a dominant force. While the adoption of electric vehicles is still in its nascent stages in India, the market is experiencing rapid growth. The IPO will see Ola Electric issue new shares to raise $660 million. Additionally, existing investors, including founder Bhavish Aggarwal, will divest their holdings for around $80 million. A noteworthy aspect of the IPO is the allocation of 10% of the shares for retail investors.
The IPO is scheduled to open for subscriptions from August 1st to August 6th, with the anchor offer opening on August 1st and the public offer commencing on August 2nd. The company's IPO prospectus highlights the allocation of funds. The proceeds will be directed toward funding capital expenditures and bolstering research and development efforts. Ola Electric has garnered significant investor interest, with prominent entities like Fidelity, Nomura, and Norges Bank, along with several Indian mutual funds, indicating their intention to participate in the offering.
Source: Ola Electric IPO price band set at ₹72-76 per share; issue to open on August 2