Ola Electric IPO final allotment expected August 7

7 Aug 2024 , 04:05 PM

Ola Electric Mobility is expected to finalize its IPO share allotment on Wednesday, August 7. The ₹6,145-Crore IPO was subscribed more than 4 times by the end of the bidding period on August 6.

The IPO consists of a fresh issue of up to ₹5,500 Crore and an Offer for Sale (OFS) of 8,49,41,997 equity shares valued up to ₹646 Crore. The price band for the IPO has been set at ₹72 to ₹76 per share.

Ola Electric founder Bhavish Aggarwal sold around 3.8 Crore shares through the OFS. The IPO is tentatively scheduled to be listed on August 9, with shares to be available on both the NSE and BSE.

By the end of bidding, the IPO was subscribed 4.27 times, with applications totaling 198.79 Crore shares against the 46,51,59,451 shares offered.

• The Qualified Institutional Buyers (QIBs) quota was subscribed 5.31 times.
• The Retail Individual Investors (RIIs) portion was subscribed 3.92 times.
• The non-institutional investors’ quota was subscribed 2.40 times.

Investors can check their share allotment status online on the NSE, BSE, and the IPO registrar’s websites once the allocation is finalized. The company raised ₹2,763 Crore from anchor investors prior to the public offering.

The IPO proceeds are planned to be used as follows:

• Approximately ₹1,600 Crore will be allocated to research and product development.
• ₹800 Crore will be used for debt repayment.
• ₹350 Crore will be invested in organic growth initiatives.

Ola Electric intends to finance the construction of Phase 1 (a) and Phase 1 (b) of its Gigafactory in Krishnagiri district, Tamil Nadu, using internal funds and long-term borrowings from its subsidiary, Ola Cell Technologies Pvt Ltd (OCT). Part of the IPO funds will be used to support OCT’s capital expenditures to expand its cell manufacturing capacity from 5 GWh to 6.4 GWh.