Ola Electric IPO to Debut on Dalal Street on August 2nd

Founded in 2017, Ola Electric Mobility Limited specializes in manufacturing electric vehicles and key components like battery packs, motors, and vehicle frames at its Ola Futurefactory. Since August 2021, the company has launched seven new products and announced four more. The flagship Ola S1 Pro was delivered in December 2021, followed by models like the Ola S1, Ola S1 Air, Ola S1 X, and Ola S1 X+. In August 2023, Ola Electric unveiled a new range of electric vehicles, including motorcycles such as Diamondhead, Adventure, Roadster, and Cruiser.

IPO Details

The Ola Electric IPO consists of a fresh issue of 72.37 crore shares, aggregating to Rs 5,500.00 crores, and an offer for sale of 8.49 crore shares, totaling Rs 645.56 crores. The price band for the IPO is set between Rs 72 and Rs 76 per share. The allotment of shares is expected to be finalized on August 7, 2024, with the listing on BSE and NSE scheduled for August 9, 2024.

The book-running lead managers for the IPO are Kotak Mahindra Capital Company Limited, Bofa Securities India Limited, Axis Capital Limited, and SBI Capital Markets Limited. Link Intime India Private Ltd has been appointed as the registrar for the issue.

Financial Performance

Utilization of IPO Proceeds

The proceeds from the IPO are earmarked for several key initiatives. These include expanding the capacity of its subsidiary OCT’s cell manufacturing plant from 5GWh to 6.4GWh (Phase 2 of the expansion plan), repaying or pre-paying the indebtedness incurred by its subsidiary OET, investing in research and product development, funding organic growth initiatives, and covering general corporate purposes.

Conclusion: Ola Electric’s upcoming IPO represents a significant milestone for the company as it seeks to expand its manufacturing capabilities and enhance its product offerings. With a strong lineup of electric vehicles and a clear plan for utilizing the proceeds, Ola Electric is poised to strengthen its position in the rapidly growing electric vehicle market. The IPO is anticipated to attract substantial investor interest, reflecting confidence in the company’s future prospects and growth potential.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.