Ola Electric IPO Alert: Anchor Round August 1, Get Ready for Listing by August 9!

Ola Electric, a top Indian electric vehicle (EV) manufacturer, is preparing for its initial public offering (IPO) with the anchor round scheduled for August 1. The public issue will be open for subscription from August 2 to August 6, according to CNBC-TV18 sources.

First Two-Wheeler EV on BSE

The Bhavish Aggarwal-led company is set to be the first two-wheeler EV firm to list on the Bombay Stock Exchange, with an expected listing date of August 9. Ola Electric has not commented on these developments.

Raising Funds

The company aims to raise ₹5,500 crore through a fresh equity offer. In December 2023, Ola Electric filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company will offer 95.12 million shares at ₹10 each through an offer-for-sale (OFS), with Bhavish Aggarwal selling 47.3 million of his shares.

Competition and Usage of Funds

Ola Electric competes with TVS Motors, Bajaj Auto, and Ather Energy. The funds raised will be used for company expenses, debt repayment, and research and development (R&D).

Market Position

Earlier reports indicate that Ola Electric held a 50% market share in the first quarter of the financial year 2024-25. The company’s current capacity allows it to assemble up to 1 million vehicles, and it can integrate motors, batteries, and electronic EV components vertically.

EV Market Growth

Mint reported on July 9 that EV penetration is expected to grow from 5% in FY24 to 20% in FY30, implying a 30% compound annual growth rate (CAGR).

Investment Banks Involved

Kotak Mahindra Capital, Axis Capital, Goldman Sachs, ICICI Securities, Citi, BofA Securities, SBI Caps, and BOB Caps are working on the deal, with Cyril Amarchand Mangaldas (CAM) serving as the legal advisor.

Ola Electric was valued at $5.4 billion after its September 2023 funding round led by Temasek, according to CNBC-TV18.