New Delhi: India’s largest Electric two-wheeler (e2W) manufacturer, Ola Electric, has received capital markets regulator Sebi’s approval to raise around Rs 7,250 crore through an initial public offering (IPO). According to Inc24, Umesh Chandra Paliwal, cofounder of UnlistedZone, Ola Electric’s IPO price band could be around Rs 130 – Rs 150. According to other industry experts, at expected valuation of around Rs 7,250, the IPO may be overvalued.
Ola Electric IPO Details
The proposed stake sale constitutes a fresh issue of equity shares of up to Rs 5,500 crore and an offer for sale (OFS) of 9.52 crore equity shares. Promoters will trim their holdings in the company via the OFS. A portion of cash raised through the IPO will go to the promoters, while, the company will utilise remaining money for various purposes. The Bengaluru-based e2W had earlier filed preliminary IPO papers with Sebi in December 2023, but received the approval on June 11, 2024.
Who are Ola Electric’s Promoters?
Bhavish Aggarwal, Softbank Group, Tiger Global are some of the notable promoters who will be selling shares of the company through the Ola Electric IPO. Kotak Mahindra Capital Company, Citigroup Global Markets India, BofA Securities India, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, SBI Capital Markets, and BOB Capital Markets will be the book-running lead managers to the public issue.
How will Ola Electric utilise IPO proceeds?
The company will utilise IPO proceeds to increase its capex. Funds will be utilised in day to day operations of the Ola Gigafactory project in Tamil Nadu. The firm will also utilise the funds for payment of debt, investment into research and product development and other general corporate purposes.
Ola Electric business
Ola Electric manufactures EVs and EV components like electric batteries packs and motors at manufacturing facility, Ola Future factory in Tamil Nadu. The pure EV play company is also in the process of building an EV hub which would comprise the Ola Futurefactory and upcoming Ola Gigafactory in Tamil Nadu.
Ola Electric FY23 results
The company’s total income had risen seven times to Rs 2,630.93 crore in the financial year 2022-23 (FY23) from Rs 373.42 crore in the preceding fiscal. Founded in 2017 by entrepreneur, Bhavish Aggarwal, Ola Electric drove its first e-scooter ‘S1 Pro’ four years later in August 2021, but, the company soon expanded its fleet to five e-scooter models in the country. Currently, the EV company is the largest e2W manufacturer in the country. According to Society of Manufacturers of Electric Vehicle (SMEV), the company had sold total of 3.26 lakh units of e2Ws in FY24.
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Ola Electric IPO Size constitutes a fresh issue of equity shares of up to Rs 5,500 crore and an offer for sale (OFS) of 9.52 crore equity shares. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
