Ola Electric IPO: The initial public offering (IPO) of Ola Electric will open for subscription on August 2, aiming to raise Rs 6,145.56 crore.
Founded in 2017 by Bhavish Aggarwal, Ola Electric Mobility Limited focuses on electric vehicles. The company produces electric vehicles and key components like battery packs, motors, and vehicle frames at its Ola Futurefactory.
The Ola Electric IPO is a book-built issue. It includes a fresh issue of 72.37 crore shares to raise Rs 5,500 crore and an offer for sale of 8.49 crore shares worth Rs 645.56 crore.
Ola Electric IPO
OLA Electric’s upcoming IPO is a promising investment opportunity. Opening on August 2, 2024, this IPO allows investors to be part of OLA Electric’s growth.
The IPO will be available for subscription from August 2 to August 6, 2024. Share allotments will be finalized on August 7, 2024, with shares listed on the BSE and NSE on August 9, 2024.
The IPO price is set between Rs 72 and Rs 76 per share. Investors can apply for a minimum of 195 shares, making the minimum investment Rs 14,820.
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About Ola Electric
OLA Electric, an Indian electric vehicle (EV) manufacturer, was founded in 2017. The company specializes in producing electric vehicles and essential components like battery packs, motors, and vehicle frames at its state-of-the-art Ola Futurefactory.
Since August 2021, OLA Electric has introduced seven products and announced four more. The first model, the Ola S1 Pro, was delivered in December 2021. By October 31, 2023, the company had built a strong distribution network in India, comprising 870 showrooms and 431 service centres.
In FY 2023, OLA Electric played a major role in India’s two-wheeler exports, with about 75% of the exports going to LATAM, Africa, and Southeast Asia. As of March 31, 2024, the company employed 959 people, with a focus on research, product development, and vehicle design.
Ola Electric IPO Details
The following are the key details of the Ola Electric IPO:
IPO Schedule (Expected):
Here are the key dates and events for the upcoming IPO:
| Event | Date |
|---|---|
| IPO Open Date | August 2, 2024 |
| IPO Close Date | August 6, 2024 |
| Basis of Allotment | August 7, 2024 |
| Initiation of Refunds | August 8, 2024 |
| Credit of Shares to Demat | August 8, 2024 |
| Listing Date | August 9, 2024 |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on August 6, 2024 |
Share Details:
Here is a breakdown of the share parameters for the IPO:
| Parameter | Details |
|---|---|
| Face Value | ₹10 per share |
| Price Band | ₹72 to ₹76 per share |
| Lot Size | 195 shares |
| Total Issue Size | 808,626,207 shares (₹6,145.56 Cr) |
| Fresh Issue | 723,684,210 shares (₹5,500.00 Cr) |
| Offer for Sale | 84,941,997 shares (₹645.56 Cr) |
| Employee Discount | ₹7 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE, BSE |
| Share Holding Pre-Issue | 3,687,072,258 shares |
| Share Holding Post-Issue | 4,410,756,468 shares |
Reservation for Investors:
Here is how the shares are reserved for different types of investors:
| Investor Category | Shares Offered |
|---|---|
| QIB | Not less than 75% of the Net Issue |
| Retail | Not more than 10% of the Net Issue |
| NII (HNI) | Not more than 15% of the Net Issue |
Lot Size Details:
Here are the details for the minimum and maximum lot sizes for different investor categories:
| Lot Size | Application Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 195 | ₹14,820 |
| Retail (Max) | 13 | 2,535 | ₹192,660 |
| S-HNI (Min) | 14 | 2,730 | ₹207,480 |
| S-HNI (Max) | 67 | 13,065 | ₹992,940 |
| B-HNI (Min) | 68 | 13,260 | ₹1,007,760 |
Objectives of Ola Electric IPO
The OLA Electric IPO plans to use the funds raised for several important goals:
- Increasing Capacity: Boosting the production capacity of its subsidiary OCT’s battery plant from 5 GWh to 6.4 GWh in the second phase of its expansion.
- Debt Reduction: Paying off some or all of the debt from its subsidiary, OET.
- Innovation: Investing in research and development to improve technology and products.
- Growth Initiatives: Supporting efforts to drive the company’s organic growth.
- Corporate Needs: Funding various general corporate expenses.
Financial Performance of OLA Electric
For the financial year ending March 31, 2024, Ola Electric saw a significant revenue increase of 88.42%, totaling ₹5,243.27 crore. This is up from ₹2,782.70 crore in the previous year. Here’s a summary of Ola Electric’s financial performance:
| Financial Performance of OLA Electric | ||||
|---|---|---|---|---|
| Financial Metrics | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Revenue | 5,243.27 | 2,782.70 | 456.26 | 106.08 |
| Profit After Tax | -1,584.40 | -1,472.08 | -784.15 | -199.23 |
| Total Assets | 7,735.41 | 5,573.17 | 5,395.86 | 2,112.64 |
| Net Worth | 2,019.34 | 2,356.44 | 3,661.45 | 1,970.62 |
| Reserves and Surplus | -2,882.54 | -1,380.03 | -68.83 | 1,999.30 |
| Total Borrowing | 2,389.21 | 1,645.75 | 750.41 | 38.87 |
Also Check: Union Budget 2024 Highlights
Ola Electric IPO FAQs
Q.1. When does Ola Electric’s IPO open for subscription?
Ans. Ola Electric’s IPO opens on August 2, 2024.
Q.2. What is the price range for Ola Electric’s IPO shares?
Ans. The IPO price is set between ₹72 and ₹76 per share.
Q.3. How many shares are being offered in Ola Electric’s IPO?
Ans. The IPO includes a fresh issue of 72.37 crore shares and an offer for sale of 8.49 crore shares.
Q.4. What are the key dates for the Ola Electric IPO?
Ans. The IPO opens on August 2, closes on August 6, allotments are finalized on August 7, and shares will be listed on August 9, 2024.
Q.5. What are the objectives of the Ola Electric IPO?
Ans. Funds will be used to increase production capacity, reduce debt, invest in R&D, support growth initiatives, and cover corporate expenses.
