Ola Electric is expected to open its Initial Public Offering (IPO) for the public subscription soon, as par the source the IPO will open for subscription between August 02 and August 06’ 2024. However, the exact dates for the opening and closing of the IPO have not been officially announced yet.
Ola Electric has secured SEBI’s regulatory approval for its IPO in June 2024. The IPO is expected to include a fresh issue of ₹5,500 crore and an offer for sale (OFS) of over 95 million equity shares by existing shareholders. Ola Electric is aiming for a valuation of $6-7 billion through the IPO.
Ola Electric IPO details are as follows:
IPO Size: The total IPO size is Rs. 7,000 crore (approx. USD 850 million). This includes a fresh issue of shares worth Rs. 5,500 crore and an offer for sale (OFS) of 9.52 crore shares by existing shareholders.
Timeline:
- The IPO was expected to open in August 2024, but the dates have not yet been officially announced.
- The listing is expected to happen on August 9, 2024.
Lead Managers: Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, and SBI Capital Markets.
The Ola Electric IPO proceeds will be used for:
- Funding capital expenditure: This includes expanding the capacity of the subsidiary Ola Cell Technologies’ (OCT) cell manufacturing plant from 5 GWh to 6.4 GWh.
- Repaying borrowings: This is for borrowings obtained by OCT.
- Research and product development: This includes developing new electric vehicles technologies and products.
- Funding organic growth initiatives: This could include expanding into new markets or launching new services.
- Corporate general purposes: This could include working capital requirements and other general corporate expenses.
Ola Electric is a leading player in India’s electric two-wheeler market. The company has been valued at $5 billion in its latest funding round. The IPO is expected to generate significant interest from investors, given the growing demand for electric vehicles in India.