Ola Electric Mobility Limited, backed by Hyundai Motor Company, is set to secure approximately $100 million for Hyundai’s 2.95 percent stake through its $734 million (Rs 6,145.56 crore) initial public offering (IPO).
The company has priced its shares between Rs 72 and Rs 76 each, with a face value of Rs 10 per share. The IPO subscription period opens on Friday, August 2, 2024, and closes on Tuesday, August 6, 2024.
Led by Bhavish Aggarwal and headquartered in Bengaluru, Ola Electric is offering a combination of new shares worth up to $657 million (Rs 5,500 crore) and an offer-for-sale (OFS) of 8.49 crore shares from promoters and existing investors. At the upper price limit of Rs 76, the OFS is expected to generate about $77 million (Rs 645.56 crore) for the sellers. The initial OFS size was reduced from 9.51 crore shares to 8.49 crore shares.
The IPO has allocated 75 percent of the shares for institutional investors, 15 percent for non-institutional investors, and 10 percent for retail investors.
The capital raised from the fresh share issuance will be utilized for various purposes, including capital expenditures by its subsidiary OCT, debt repayment or reduction, investment in research and product development, and support for organic growth.
Ola Electric manufactures electric vehicles (EVs) and key EV components like battery packs, motors, and vehicle frames at its Ola Futurefactory. The company aims to capture a significant share of the growing electric mobility market in India and plans to export EVs to select international markets. It began delivering its first EV, the 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 a report by Redseer, Ola became the best-selling electric two-wheeler brand in India within nine months of delivering its first EV scooter in December 2021, based on monthly registrations on the VAHAN Portal of the Ministry of Road Transport and Highways.
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