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Ola Electric, led by Bhavish Aggarwal, is set to open its much-anticipated IPO to investors on August 02, aiming to raise a substantial Rs 6,145.56 crore. This amount will be garnered through the issuance of fresh shares and an offer for sale. The IPO will close on August 06.
Key details of the IPO
- Total amount to be raised: Rs 6,145.56 crore
- Fresh shares: Rs 5,500 crore through 72.37 crore new shares
- Offer for sale: Rs 645.56 crore through 8.49 crore shares by promoters and other shareholders
- Issue price band: Rs 72 to Rs 76 per equity share
- Grey market premium: Approximately 16%
- IPO open date: August 02
- IPO close date: August 06
- Allotment of shares: Expected by August 07
- Listing date: Tentatively August 09 on NSE and BSE
- Retail subscribers: Minimum of one lot containing 195 shares, amounting to Rs 14,820.
- Small NIIs: Minimum lot size of 14 containing 2,730 shares.
- Big NIIs: Lot size of 68 containing 13,260 shares.
According to the papers filed with SEBI, Ola Electric is a leading player in India’s EV sector, focusing on vertically integrated technology and manufacturing capabilities. The company is building an EV hub in Tamil Nadu, which includes the Ola Futurefactory for EV manufacturing, Ola Gigafactory for cell manufacturing, and co-located suppliers. Their direct-to-customer omnichannel distribution network includes 870 experience centers and 431 service centers across India as of March 31, 2024.
The lead book-runners for Ola Electric’s IPO are Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, SBI Capital Markets, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, and BoB Capital Markets. The registrar handling the IPO is Link Intime India.
Ola Electric’s IPO comes at a time when India is focusing on reducing its carbon footprint and enhancing energy security. With a 35% market share in India’s electric two-wheeler market in FY24, up from 21% in FY23, Ola Electric sold 3.29 lakh units in FY24, more than doubling its sales from the previous year.
Ola Electric has set the price band at Rs 72-76 per share for its IPO. At the upper end, the company’s valuation stands at Rs 33,500 crore (approximately $4 billion). The stock is trading at a grey market premium of Rs 12 per share to the upper band of the issue price, translating to a premium of around 16%. Market participants believe the grey market premium movement will be crucial in assessing the IPO demand.
Ola Electric’s IPO is a pivotal development in the green mobility space, reflecting its strategic focus and market leadership. The substantial funds raised through the IPO will support its ambitious plans and further bolster India’s position in the global EV market.