Ola Electric has raised ₹2,763 crore from lead investors ahead of the IPO subscription for bidding. The initial public offering (IPO) of India’s largest electric two-wheeler (e2W) maker is all set to hit D-Street for its three-day subscription on Friday, August 2 and will close on Tuesday, August 6. The pure electric vehicle (EV) player’s IPO was set at a range of ₹72 to ₹76 per share with a face value of ₹10.
A number of investors such as foreign portfolio investors (FPIs), domestic mutual funds and insurance companies participated in the main round of the SoftBank-backed public issue. According to BSE data, anchor allocation was made to more than 80 domestic and foreign funds on Thursday, August 1.
SBI Mutual Fund (MF), HDFC MF, Nippon India MF, Sundaram MF, Bandhan MF, Bharti Axa Life Insurance Company, Kotak Mahindra Life Insurance Company, Government Pension Fund Global, Nomura India Investment Fund, Goldman Sachs (Singapore) Pte Ltd, and Fidelity were allocated stakes in the anchor round.
Ola Electric IPO Details
Ola Electric’s ₹6,146 crore IPO is the largest since the ₹21,000 crore IPO of India’s state-owned Life Insurance Corp (LIC) in May 2022. The IPO is a combination of a fresh share issue of up to ₹5,500 crore and an offer for sale ( OFS) 8.49 crore shares valued at ₹ 645.56 crore at the upper end of the price band from promoters and investors.
This brings the total issue size to ₹ 6,145.56 crore. In the IPO, Ola Electric founder Bhavish Aggarwal will sell around 3.8 million shares. The issue lot size is 195 shares and then in multiples of 195 shares.
The Ola Electric IPO has earmarked 75 percent of its shares for qualified institutional buyers (QIBs), 15 percent for non-institutional institutional investors (NIIs) and 10 percent for retail investors. E2W allotted 36.35 million shares to 84 funds at ₹76 each, aggregating the transaction volume to ₹2,763 crore.
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The lead book managers for the OLA Electric IPO are Bob Capital Markets Ltd., Goldman Sachs (India) Securities Private Ltd., ICICI Securities Ltd., Axis Capital Ltd., Bofa Securities India Ltd., SBI Capital Markets Ltd. and Kotak Mahindra Capital Company Ltd. Link The registrar of this issue is Intime India Private Ltd.
Ola Electric’s IPO basis for allotment of shares is expected to be completed on August 7. The shares will be deposited in the demat accounts of the allottees on the same day as the refund, which is scheduled to begin on Thursday, August 8. The share price of Ola Electric is likely to be listed on BSE and NSE on Friday, August 9.
For Ola Electric, this public issue will be a much-needed boost to increase cell manufacturing capacity and research and development of future technologies and products. Ola Electric plans to use ₹1,227.6 crore from the proceeds to expand the capacity of its cell plant to 6.4 GWh from 5 GWh.
The EV startup also plans to use nearly ₹1,600 crore of the IPO proceeds for product research and development, around ₹800 crore for debt repayment and ₹350 crore for organic growth initiatives.
