Ola Electric, backed by SoftBank, is set to open its IPO for retail investors on August 2. The IPO will start for institutional investors a day earlier and will close for retail subscriptions on August 6. Here are 10 important things investors should know:
Ola Electric IPO Size
The company, led by Bhavish Aggarwal, aims to raise ₹5,500 crore in new capital through the IPO. Founder Bhavish Aggarwal will sell 37.9 million shares, while investors like Alpha Wave, Alpine, DIG Investment, Matrix, and others will sell 47.89 million shares.
Ola Electric IPO Date
The IPO will start for institutional investors on Thursday and close for retail subscriptions on August 6.
Ola Electric is expecting a lower valuation than its last funding round, which was $5.4 billion. The IPO is likely to value the company between $4.2 billion and $4.4 billion. Initially, Ola Electric aimed for a $6-7 billion valuation.
Financial Performance
Ola Electric’s revenue increased to ₹5,009.8 crore in fiscal 2024, up from ₹2,630.9 crore in fiscal 2023, driven by increased scooter sales. However, its loss for the year increased to ₹1,584.4 crore in fiscal 2024, up from ₹1,472 crore in fiscal 2023.
Sales of Ola Scooters
In fiscal 2024, Ola sold 329,618 scooters, compared to 156,251 scooters in fiscal 2023.
Ola Electric dominates India’s electric scooter market with over a third of the market share, competing with Hero MotoCorp-backed Ather Energy, Bajaj Auto, and TVS Motors. In July, Ola Electric held a 39% market share, down from 46% in June and 58% in May.
Net Proceeds
Ola Electric plans to use ₹1,227 crore from the IPO proceeds to expand its battery cell manufacturing plant, Ola Gigafactory, from 5 GWh to 6.4 GWh by April 2025. It will also use ₹800 crore to repay loans, ₹1,600 crore for research and product development, and ₹350 crore for growth initiatives.
First EV Startup IPO
SEBI approved the IPO last month, making it the first by an EV startup in India and one of the biggest new-age IPOs in 2024.
Lead Manager
The book-running lead managers for the offer are Kotak, Citi, BofA Securities, Goldman Sachs, Axis, I-Sec, SBICAP, and BOBCAPS.
Registrar
Link Intime India Private Limited is the registrar for the issue.
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