Bengaluru-based Ola Electric Mobility Limited, a pure EV player in India building vertically integrated technology and manufacturing capabilities for EVs and EV components, has fixed the price band of ₹72/- to ₹76/- per Equity Share of face value ₹10/- each for its maiden initial public offer. The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Friday, August 2, 2024, for subscription and close on Tuesday, August 6, 2024. Investors can bid for a minimum of 197 Equity Shares and in multiples of 197 Equity Shares thereafter.
The IPO consists of fresh issue of up to Rs 55,000 million and an offer for sale (OFS) of up to 84,941,997 equity shares by Promoter Selling Shareholders and Investor Selling Shareholder. The offer also includes a reservation for eligible employees.
The proceeds from the fresh issue, to the extent of Rs 12,276.41 million will be used for capital expenditure incurred by the Subsidiary, OCT for the Project; Rs 8,000 million for repayment or pre-payment, in full or part, of the indebtedness incurred by the Subsidiary, OCT; Rs 16,000 million for investment into research and product development; Rs 3,500 million for expenditure to be incurred for organic growth initiatives and general corporate purposes.
Ola Electric manufactures EVs and certain core EV components like battery packs, motors and vehicle frames at the Ola Futurefactory. Its business focuses on capturing the opportunity arising out of electrification of mobility in India and also to export its EVs in select international markets in the future. It commenced the delivery of its first EV model, the Ola S1 Pro, in December 2021, followed by delivery of 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, it became the best-selling E2W brand in India in terms of monthly E2W registrations on the VAHAN Portal of Ministry of Road Transport and Highways (“VAHAN”) according to the Redseer Report.
Ola’s business model comprises of its R&D and technology platform with in-house design and development across EV technologies and components, adaptable manufacturing and supply chain platform, and D2C omnichannel distribution platform. Its model is vertically integrated across R&D and technology, manufacturing, supply chain, sales and service, and charging facilities.
The current EV scooter Generation 2 platform is the base for 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). It plans to replicate the platform approach for its recently announced motorcycle range which comprises four models – Diamondhead, Adventure, Roadster and Cruiser.
Ola has a Futurefactory, Gigafactory and a Battery Innovation Centre in Bengaluru, whereas it is in the process of building its EV hub in Krishnagiri and Dharmapuri districts in Tamil Nadu.
Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, BofA Securities India Limited, Goldman Sachs (India) Securities Private Limited, Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited, and BOB Capital Markets Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
The Offer is being made through the Book Building Process, wherein not less than 75% of the net offer shall be available for allocation to Qualified Institutional Buyers, not more than 15% of the net offer shall be available for allocation to Non-Institutional Bidders and not more than 10% of the net offer shall be available for allocation to Retail Individual Bidders.
