Ola Electric Mobility Ltd on Monday fixed a price band of ₹72-76 per share for its initial public offering (IPO) which will open for subscription on August 2 and close on August 6.
The IPO, the biggest so far in this calendar year, consists of fresh issue of up to ₹5,500 crore and an offer for sale (OFS) of up to 8.49 crore equity shares by the promoter and investors which will yield them ₹645.56 crore at the upper end of the price band. The offer also includes reservations for eligible employees.
Investors can bid for a minimum of 197 shares and in multiples of 197 shares thereafter.
Ola Electric CEO Bhavish Aggarwal said on Monday the company would launch its all-electric motorcycle in 2025.
He added that while Ola Electric is the leader in the EV space, there is a tremendous scope for expansion as EV penetration in scooters
is 15 per cent.
Ola Electric plans to utilise ₹1,227.6 crore out of the proceeds on capacity expansion of its cell manufacturing plant to 6.4GWh from 5GWh.
The company is also looking to use ₹1,600 crore from the fresh fund on research and product development, while another ₹800 crore will be deployed to repay debts and ₹350 crore for organic growth initiatives.
Ola Electric first rolled out Ola S1 Pro in December 2021, followed by the Ola S1 in September 2022, the Ola S1 Air in August 2023 and the Ola S1 X+ in December 2023.
According to an Axis Capital note, Ola Electric is well-positioned to address the large market opportunity in EV led by their vertical integrated approach, focus on technology, R&D, execution ability and eligibility to avail certain government incentives.
``Globally disruptor OEMs (versus incumbent OEMs) have emerged as winners in EVs driven by a focus on innovation. Similarly, in India, disruptor OEMs have scaled well to cover more than 67 per cent of the E2W (electric two-wheeler) domestic sales by volume in the first half of fiscal 2024,’’ the brokerage added.
