Ola Electric IPO opens today; check subscription details

2 Aug 2024 , 01:58 PM

The initial public offering (IPO) of electric two-wheeler company Ola Electric Mobility Ltd opened for public subscription today, August 02, 2024. The IPO will close on August 6.

At the time of writing on the first day of bidding at 1:00 pm, the retail quota received 1.09 times the subscription, while the non-institutional investors category received 0.10 times the subscription, and the overall subscription rate stood at 0.23 times, according to the latest data. The IPO opened at 10 am.

The price band for the Ola Electric IPO is fixed at ₹72-₹76 per share. Share allotment is likely to be finalized on August 6, and listing on both BSE and NSE is expected on August 8.

The IPO includes a fresh issue of equity shares up to ₹5,500 Crore and an offer for sale (OFS) of 8.49 Crore equity shares worth ₹645.56 Crore, by promoters and investors, totalling ₹6,145.56 Crore.

On Thursday, Ola Electric raised ₹2,763 Crore from anchor investors, one day before the public subscription opening.

The Bhavish Aggarwal-owned company’s IPO is highly anticipated among investors, marking one of India’s biggest IPOs this year and the first-ever EV two-wheeler listing on Indian bourses.

Investors need to apply for a minimum of 195 equity shares and in multiples thereof, resulting in a minimum investment of ₹14,820 [195 (lot size) x ₹76 (upper price band)].

Under the OFS, founder Bhavish Aggarwal will offload almost 3.8 Crore shares. The IPO will provide Ola Electric with funds to enhance cell manufacturing capacity and research and development on future technologies and products.

Ola Electric plans to use ₹1,227.6 Crore from the IPO proceeds to expand its cell manufacturing plant capacity from 5 GWh to 6.4 GWh. The company also plans to use ₹1,600 Crore for research and product development, ₹800 Crore to repay debts and ₹350 Crore for organic growth initiatives.

According to its RHP, Phase 1(a) and Phase 1(b) of the Ola Gigafactory expansion in Krishnagiri district, Tamil Nadu, will be funded through internal accruals and long-term borrowings by its arm Ola Cell Technologies Pvt Ltd (OCT).

The company stated that a portion of the IPO proceeds will be used for capital expenditure by OCT to expand the cell manufacturing plant’s capacity from 5 GWh to 6.4 GWh.