Ola Electric IPO to Open on August 2; Listing Expected by August 9
- ByStartupStory | July 27, 2024
Ola Electric, the Bengaluru-based electric vehicle (EV) startup, is set to launch its highly anticipated initial public offering (IPO) on August 2, with the listing expected to occur on August 9. The subscription for the anchor investor portion is slated to open on August 1, according to sources familiar with the matter.
This IPO will be a landmark event, marking the first public issue by an EV startup in India and positioning itself as one of the largest new-age public offerings in 2024.
The company submitted its draft red herring prospectus to the Securities and Exchange Board of India (SEBI) in December 2023. The draft prospectus reveals that Ola Electric aims to raise up to ₹5,500 crore through a fresh issue of shares. Additionally, existing shareholders plan to sell 95.2 million shares via an offer-for-sale (OFS) route.
Promoter Bhavish Aggarwal will be offloading 47.4 million shares, while the promoter group Indus Trust will sell 4.18 million shares through the OFS. The company’s investors, including AlphaWave, Alpine, DIG Investment, and Matrix Partners, are set to sell 41.53 million shares through the OFS as outlined in the draft filing.
The company has also kept the option to raise ₹1,100 crore through a pre-IPO placement, which would adjust the size of the fresh issue accordingly.
Ola Electric, backed by SoftBank, is anticipated to value the company at approximately $4.5 billion for its IPO. This valuation represents about a 16%-20% reduction from its last funding round, as reported by Reuters.
The funds raised will be allocated as follows: over ₹1,200 crore for expanding the capacity of its gigafactory, ₹800 crore for debt repayment, ₹1,600 crore for research and development, and ₹350 crore for organic growth initiatives.
Kotak Mahindra Capital, Axis Capital, Goldman Sachs, ICICI Securities, Citi, BofA Securities, SBI Caps, and BoB Caps are the investment banks managing the deal. Cyril Amarchand Mangaldas is serving as the company’s legal counsel.
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