The initial public offering (IPO) of Ola Electric opens for subscription today (August 2). The Bhavish Aggarwal-led company commands nearly a 35 per cent market share in India’s electric two-wheeler market in FY24. The IPO will close on August 6 and the basis of allotment is scheduled for August 7. The company is likely to credit shares into demat accounts on August 8 and Ola Electric shares are scheduled to make their debut on the bourses on August 9.
Here are top things to know about Ola Electric Mobility IPO:
Key dates: The IPO opens for subscription on August 2 and closes on August 6.
Price band: The price band has been fixed in the range of ₹72 to ₹76 per equity share of face value of ₹10.
Lot size: The lot size is 195 equity shares and in multiples of 195 equity shares thereafter.
IPO details: The Ola Electric IPO comprises an offer for sale (OFS) of 8.49 crore equity shares by investors and promoters. In the OFS, Bhavish Aggarwal, will sell around 3.8 crore shares. The IPO reserves 75% of its shares for qualified institutional buyers (QIB), 15% for non-institutional institutional investors (NII) and 10% for retail investors.
IPO objectives: Net proceeds from the IPO will be used by the company for debt repayment, support expenditures for organic growth efforts, research and product development and for general corporate reasons.
Ola Electric IPO listing date: Ola Electric share price is likely to be listed on BSE and NSE on August 9.
Lead manager and registrar: The book running lead managers of the IPO are Bob Capital Markets Ltd., Goldman Sachs (India) Securities Private Ltd., ICICI Securities Ltd., Axis Capital Ltd., Bofa Securities India Ltd., SBI Capital Markets Ltd. and Kotak Mahindra Capital Company Ltd. Link Intime India Private Ltd. is the registrar for the issue.
Expert view on Ola Electric IPO
Tarun Singh, MD, Highbrow Securities, said, “What makes Ola Electric’s IPO particularly promising is its dual-focus on market expansion and participation in the government’s Production-Linked Incentive (PLI) scheme for both scooters and battery businesses. The PLI scheme is crucial as it helps offset some operational costs, providing the company an edge in a highly competitive market. Moreover, Ola Electric has identified key international automotive markets, including Asia, LATAM, and Africa, as fertile ground for its offerings. This global footprint can potentially unlock enormous revenue streams in the long term, giving investors a tantalising glimpse into the future profitability of the company.”