The IPO consists of a fresh issue worth Rs 5500 crore and an offer for sale of up to 84.94 million shares. At the upper price band, the offer for sale amounts to Rs 645.96 crore, bringing the total issue size to Rs 6145.96 crore.
Ola Electric Mobility Ltd has set a price band of Rs 72-76 per share for its initial public offering, which will open for subscription on August 2. Anchor investor bidding will commence on August 1, and the issue will close on August 6.
The IPO includes a fresh issue of Rs 5500 crore and an offer for sale of up to 84.94 million shares. At the upper price band, the offer for sale amounts to Rs 645.96 crore, bringing the total issue size to Rs 6145.96 crore. The total market capitalization of the firm will be approximately Rs 33500 crore.
Promoters Bhavish Aggarwal and Indus Trust will sell 3.79 crore and 41.79 lakh equity shares respectively in the offer for sale (OFS).
Among investors, SVF II Ostrich (DE) LLC, the largest shareholder in the company with a 21.98 percent stake (equivalent to 8.1 crore shares post-conversion of CCPS), will be offloading 2.38 crore shares in the OFS.
Other selling shareholders include Alpha Wave Ventures II LP, Alpine Opportunity Fund VI LP, Internet Fund III Pte, MacRitchie Investments Pte, Matrix Partners India Investments III LLC, Tekne Private Ventures XV, and Ashna Advisors LLP.
Ola, which manufactures electric vehicles (EVs) and key EV components such as battery packs, motors, and vehicle frames at the Ola Futurefactory, plans to allocate Rs 1,227.64 crore from the net fresh issue proceeds towards expanding the capacity of its subsidiary OCT's cell manufacturing plant (Ola Gigafactory) from 5 GWh to 6.4 GWh.
As of March 2024, the Ola Futurefactory is the largest integrated and automated electric two-wheeler (E2W) manufacturing plant in India in terms of production capacity, operated by an E2W-only original equipment manufacturer (OEM).
Furthermore, the fresh issue proceeds will be used to repay Rs 800 crore of debt incurred by its subsidiary, OET. As of June 15 this year, the company's consolidated debts amounted to Rs 996.67 crore.
Additionally, Rs 1,600 crore will be allocated for research and product development, while Rs 350 crore will be used for business expansion through organic growth initiatives. The remaining IPO funds will be utilized for general corporate purposes.
The EBITDA (earnings before interest, tax, depreciation, and amortization) loss for FY24 was Rs 1,267.6 crore, up from a loss of Rs 1,252.4 crore in FY23.
The company, which operates a direct-to-customer (D2C) omnichannel distribution network across India with 870 experience centers and 431 service centers, sold 3.29 lakh units in FY24, more than doubling the sales of 1.56 lakh units in the previous year.
By the end of fiscal 2024, Ola held a 35 percent market share in the electric two-wheeler (E2W) segment, up significantly from 21 percent in the previous financial year.
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