Electric two-wheeler company Ola Electric Mobility will float its initial public offering (IPO) on August 2, and a significant part of the proceeds will be used for capacity expansion of its cell manufacturing plant and revving up R&D.
The initial share sale will conclude on August 6, and the bidding for anchor investors will open for a day on August 1, according to the red herring prospectus (RHP).
The company’s proposed IPO is a combination of a fresh issue of equity shares up to ₹5,500 crore and an offer for sale (OFS) of 8.49 crore equity shares by promoters and investors, the prospectus showed.
Under the OFS, Ola Electric founder Bhavish Aggarwal will offload almost 3.8 crore shares.
The price band of the company’s maiden public issue will be announced on Monday.
For Ola Electric, the IPO will provide the much-needed impetus to invest in enhancing cell manufacturing capacity and research and development on future technologies and products.
According to its prospectus, Ola Electric Mobility Ltd (OEML) plans to utilise ₹1,227.6 crore out of the proceeds of its ₹5,500 crore public issue on capacity expansion of its cell manufacturing plant to 6.4 GWh from 5GWh.
The company is also looking to use ₹1,600 crore from the fresh fund on research and product development, another ₹800 crore will be deployed to repay debts and ₹350 crore for organic growth initiatives.
OEML, which had on August 15, 2023, announced a line-up of electric motorcycles — Cruiser, Adventure, Roadster and Diamondhead — and expects to begin delivery of the motorcycles in the first half of fiscal 2026.
PTI
