Ola Electric Sets IPO Price Range at INR 72-76, Aims to Raise Over INR 6,145 Crore
Ola Electric is poised to raise over INR 6,145.6 crore at the upper end of its initial public offering (IPO) price band. The IPO, open for subscription from August 2 to August 6, comprises a fresh issuance of shares worth INR 5,500 crore and an offer-for-sale (OFS) component featuring up to 8.49 crore shares valued at INR 645.6 crore.
The electric vehicle (EV) mobility startup has set a price band of INR 72-76 per equity share for its upcoming IPO. At the top of this range, Ola Electric expects to raise over INR 6,145.6 crore. The IPO also includes anchor bidding starting on August 1, with a bid lot of 195 shares and multiples thereof.
The IPO allocation is structured with 75% for qualified institutional buyers (QIBs), 10% for retail investors, and 15% for non-institutional investors (NIIs). Ola Electric filed its IPO draft papers with the Securities and Exchange Board of India (SEBI) in December 2023. Initially, the public issue included a fresh issuance of shares worth INR 5,500 crore and an OFS component of up to 9.51 crore shares, which was later reduced in its red herring prospectus (RHP).
Kotak Mahindra, Citigroup, BofA Securities, Goldman Sachs, Axis Capital, and ICICI Securities are the lead book runners for the IPO.
During the IPO launch announcement, Bhavish Aggarwal, founder and CEO of Ola Electric, emphasized the company’s exclusive focus on creating the EV future, stating, “We don’t channel our efforts into internal combustion engine (ICE) or other transitional technologies like hybrids. Our exclusive focus is on creating the EV future and establishing the comprehensive business model and manufacturing ecosystem that accompany it.”
Ola Electric leads the market in the EV two-wheeler segment and is aggressively developing electric motorcycles. While plans for an electric car have been put on hold, Aggarwal clarified that the company’s immediate focus remains on two-wheeler products and developing the cell as a foundational layer for future products.
Despite operating at a loss, Ola Electric’s operating revenue surged by over 90% to INR 5,009.8 crore in FY24 from INR 2,630.9 crore in FY23, while its net loss increased by 7.6% to INR 1,584.4 crore. Aggarwal mentioned the company’s revenue is growing steadily and its gross margin improved in FY24, but did not specify a timeline for achieving profitability or EBITDA breakeven.
