Overview of the IPO
The much-anticipated Rs 6,145.56 crore Initial Public Offering (IPO) of Ola Electric Mobility opens for bidding today, Friday, August 2. Investors can bid for shares in the price range of Rs 72-76 each, with a minimum lot size of 195 equity shares.
IPO Details
The IPO will be open for three days, concluding on Tuesday, August 6. Ola Electric, a prominent electric vehicle (EV) manufacturer based in Bengaluru, was founded in 2017. The company focuses on producing electric vehicles and core EV components, such as battery packs, motors, and vehicle frames, primarily at its Ola Futurefactory.
Structure of the IPO
The Rs 6,145.55 crore-IPO includes a fresh share sale worth up to Rs 5,500 crore and an offer-for-sale (OFS) of up to 8,49,41,997 shares by its promoters and existing shareholders. Notable stakeholders participating in the OFS include Promoter Bhavish Aggarwal, Indus Trust, Alpha Wave Ventures, Alpine Opportunities Fund, Internet Funds III, MacRitchie Investment, and Matrix Partners India.
Utilization of Proceeds
The funds raised from the fresh issue will be used for:
- Expanding the capacity of its cell manufacturing plant through capital expenditure by its subsidiary, OCT
- Repaying or pre-paying debts
- Investing in research and product development
- Supporting organic growth initiatives
- General corporate purposes
Anchor Investors
Ola Electric has already allotted 36.4 crore shares to anchor investors, raising Rs 2,763 crore at Rs 76 per share. Prominent anchor investors include Government Pension Fund Global, Nomura India Investment, Goldman Sachs (Singapore), Fidelity, SBI Mutual Fund (MF), HDFC MF, Nippon India MF, Sundaram MF, Bandhan MF, and Bharti Axa Life Insurance.
Product Line and Distribution
Since August 2021, Ola Electric has launched seven new products and announced four more. The Ola S1 Pro, the company’s first EV model, was delivered in December 2021. Subsequent models include the Ola S1, Ola S1 Air, Ola S1 X, and Ola S1 X+. On August 15, 2023, Ola announced new EV models and a range of motorcycles, including Diamondhead, Adventure, Roadster, and Cruiser.
The company operates a widespread omnichannel distribution network across India, with 870 experience centers and 431 service centers as of October 31, 2023. In FY 2023, about 75% of India’s 2W exports were to Africa, LATAM, and South East Asia, with domestic E2W supply being limited.
Financial Performance
For the financial year ending March 31, 2024, Ola Electric reported a net loss of Rs 1,584.40 crore on a revenue of Rs 5,243.27 crore. The previous fiscal year saw a net loss of Rs 1,472.08 crore on a revenue of Rs 2,782.70 crore. The anchor book for the issue opened for bidding on Thursday, August 1.
Employee Reservation and Share Allocation
The company has reserved shares worth Rs 5.5 crore for eligible employees, offering a discount of Rs 7 per share. Qualified institutional bidders will receive 75% of the net offer, non-institutional investors 15%, and retail investors 10%.
Lead Managers and Listing
The IPO is being managed by Kotak Mahindra Capital, BofA Securities India, Axis Capital, SBI Capital Markets, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, and BOB Capital Markets, with Link Intime India as the registrar. Shares are expected to be listed on both BSE and NSE on Friday, August 9.
Expert Opinions
Here's what various brokerage firms have to say about the Ola Electric IPO:
Overview of the IPO
The much-anticipated Rs 6,145.56 crore Initial Public Offering (IPO) of Ola Electric Mobility opens for bidding today, Friday, August 2. Investors can bid for shares in the price range of Rs 72-76 each, with a minimum lot size of 195 equity shares.
IPO Details
The IPO will be open for three days, concluding on Tuesday, August 6. Ola Electric, a prominent electric vehicle (EV) manufacturer based in Bengaluru, was founded in 2017. The company focuses on producing electric vehicles and core EV components, such as battery packs, motors, and vehicle frames, primarily at its Ola Futurefactory.
Structure of the IPO
The Rs 6,145.55 crore-IPO includes a fresh share sale worth up to Rs 5,500 crore and an offer-for-sale (OFS) of up to 8,49,41,997 shares by its promoters and existing shareholders. Notable stakeholders participating in the OFS include Promoter Bhavish Aggarwal, Indus Trust, Alpha Wave Ventures, Alpine Opportunities Fund, Internet Funds III, MacRitchie Investment, and Matrix Partners India.
Utilization of Proceeds
The funds raised from the fresh issue will be used for:
- Expanding the capacity of its cell manufacturing plant through capital expenditure by its subsidiary, OCT
- Repaying or pre-paying debts
- Investing in research and product development
- Supporting organic growth initiatives
- General corporate purposes
Anchor Investors
Ola Electric has already allotted 36.4 crore shares to anchor investors, raising Rs 2,763 crore at Rs 76 per share. Prominent anchor investors include Government Pension Fund Global, Nomura India Investment, Goldman Sachs (Singapore), Fidelity, SBI Mutual Fund (MF), HDFC MF, Nippon India MF, Sundaram MF, Bandhan MF, and Bharti Axa Life Insurance.
Product Line and Distribution
Since August 2021, Ola Electric has launched seven new products and announced four more. The Ola S1 Pro, the company’s first EV model, was delivered in December 2021. Subsequent models include the Ola S1, Ola S1 Air, Ola S1 X, and Ola S1 X+. On August 15, 2023, Ola announced new EV models and a range of motorcycles, including Diamondhead, Adventure, Roadster, and Cruiser.
The company operates a widespread omnichannel distribution network across India, with 870 experience centers and 431 service centers as of October 31, 2023. In FY 2023, about 75% of India’s 2W exports were to Africa, LATAM, and South East Asia, with domestic E2W supply being limited.
Financial Performance
For the financial year ending March 31, 2024, Ola Electric reported a net loss of Rs 1,584.40 crore on a revenue of Rs 5,243.27 crore. The previous fiscal year saw a net loss of Rs 1,472.08 crore on a revenue of Rs 2,782.70 crore. The anchor book for the issue opened for bidding on Thursday, August 1.
Employee Reservation and Share Allocation
The company has reserved shares worth Rs 5.5 crore for eligible employees, offering a discount of Rs 7 per share. Qualified institutional bidders will receive 75% of the net offer, non-institutional investors 15%, and retail investors 10%.
Lead Managers and Listing
The IPO is being managed by Kotak Mahindra Capital, BofA Securities India, Axis Capital, SBI Capital Markets, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, and BOB Capital Markets, with Link Intime India as the registrar. Shares are expected to be listed on both BSE and NSE on Friday, August 9.
Expert Opinions
Here's what various brokerage firms have to say about the Ola Electric IPO: