 "Ola Electric founder Bhavish Aggarwal during an IPO presentation at Ola Campus in Bengaluru")
Ola Electric founder Bhavish Aggarwal during an IPO presentation at Ola Campus in Bengaluru
Ola Electric Mobility Limited, the electric vehicle (EV) company backed by Hyundai Motor Company, will garner close to $100 million for Hyundai’s 2.95 per cent stake in its $734 million (Rs 6,145.56 crore) initial public offering (IPO).
The company has set a price range of Rs 72 to Rs 76 per equity share, each with a face value of Rs 10. The IPO will open for subscription on Friday, August 2, 2024, and will close on Tuesday, August 6, 2024.
Ola Electric, based in Bengaluru and led by Bhavish Agarwal, is offering a mix of new shares worth up to $657 million (Rs 5,500 crore) and an offer-for-sale (OFS) of 8.49 crore shares by promoters and investors. At the upper price band of Rs 76, the OFS will raise about $77 million (Rs 645.56 crore) for the sellers. The OFS size has been reduced from the initially planned 9.51 crore shares to 8.49 crore shares.
In the IPO, 75 per cent of the shares are reserved for institutional buyers, 15 per cent for non-institutional investors, and 10 per cent for retail investors.
The proceeds from the fresh issue of shares will be used for capital expenses by its subsidiary OCT, paying off or reducing debts, investing in research and product development, and supporting organic growth.
Ola Electric makes EVs and key EV components like battery packs, motors, and vehicle frames at its Ola Futurefactory. The company aims to capture the growing electric mobility market in India and plans to export EVs to selected international markets. It started delivering its first EV, the Ola S1 Pro, in December 2021, followed by the 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, Ola became the best-selling electric two-wheeler brand in India, based on monthly registrations on the VAHAN Portal of the Ministry of Road Transport and Highways, according to a report by Redseer.
Ola’s business model includes its in-house design and development across EV technologies and components, adaptable manufacturing and supply chain platform, and direct-to-consumer (D2C) omnichannel distribution. The current Generation 2 platform supports the Ola S1 scooter models: Ola S1 Pro, Ola S1 Air, Ola S1 X+, Ola S1 X (2 kWh), and Ola S1 X (3 kWh). Ola plans to use this platform for its new motorcycle range, which includes four models: Diamondhead, Adventure, Roadster, and Cruiser.
Ola operates its Futurefactory, Gigafactory, and Battery Innovation Centre in Bengaluru and is building an EV hub in the Krishnagiri and Dharmapuri districts of Tamil Nadu.
First Published: Aug 02 2024 | 4:51 PM IST
