3 min readMumbaiJul 30, 2024 05:10 AM IST
First published on: Jul 30, 2024 at 05:10 AM IST
Bengaluru-based Ola Electric Mobility Limited, an electric vehicle (EV) player building vertically integrated technology and manufacturing capabilities for EVs and EV components, has fixed the price band of Rs 72-76 per share of face value Rs 10 each for its initial public offering (IPO).
The company will raise Rs 6,145 crore at the upper end of the IPO price band and Rs 6,111 crore at the lower end.
The IPO will open on August 2 for subscription and close on August 6. Investors can bid for a minimum of 197 equity shares and in multiples of 197 equity shares thereafter.
The IPO consists of fresh issue of up to Rs 5,500 crore and an offer for sale (OFS) of up to 8.49 crore equity shares (for up to Rs 645 crore) by promoter selling shareholders and investor selling shareholder. The offer also includes a reservation for eligible employees.
According to Ola Electric chairman and MD Bhavish Aggarwal, the proceeds from the fresh issue, to the extent of Rs 1,227.6 crore will be used for capital expenditure incurred by the subsidiary OCT for the project, Rs 800 crore for repayment or pre-payment, in full or part, of the indebtedness incurred by OCT, Rs 1600 crore for investment into research and product development and Rs 350 crore for expenditure to be incurred for organic growth initiatives and general corporate purposes.
Ola Electric manufactures EVs and certain core EV components like battery packs, motors and vehicle frames at the Ola Futurefactory. Its business focuses on capturing the opportunity arising out of electrification of mobility in India and also to export its EVs in select international markets in the future. It commenced the delivery of its first EV model, the Ola S1 Pro, in December 2021, followed by delivery of Ola S1 in September 2022, the Ola S1 Air in August 2023 and the Ola S1 X+ in December 2023.
Within nine months of delivering its first EV scooter in December 2021, it became the best-selling electric two-wheeler (E2W) brand in India in terms of monthly E2W registrations on the VAHAN Portal of Ministry of Road Transport and Highways, according to a Redseer Report
“Ola’s business model comprises of its R&D and technology platform with in-house design and development across EV technologies and components, adaptable manufacturing and supply chain platform, and D2C omnichannel distribution platform. Its model is vertically integrated across R&D and technology, manufacturing, supply chain, sales and service and charging facilities,” it said.
The current EV scooter Generation 2 platform is the base for the Ola S1 scooter models. It plans to replicate the platform approach for its recently announced motorcycle range which comprises four models – Diamondhead, Adventure, Roadster and Cruiser, Aggarwal said at a press conference. Ola has a Futurefactory, Gigafactory and a Battery Innovation Centre in Bengaluru, whereas it is in the process of building its EV hub in Krishnagiri and Dharmapuri districts in Tamil Nadu.
The company will raise Rs 6,145 crore at the upper end of the IPO price band and Rs 6,111 crore at the lower end. (Reuters/File) 
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