Ola Electric Mobility Ltd. has determined a price range of Rs72–76 per share for its IPO, which is scheduled to begin accepting subscriptions on August 2. On August 1st, the anchor investor bidding will begin, and the offering will end on August 6th.
The transaction consists of an offer to sell up to 84.94 million shares and a new issuance of Rs. 5,500 crore. OFS is priced at Rs 645.96 crore, which is the highest price range. The entire amount of the offering would be Rs 6145.96 crore.
The OFS will see the sale of 3.79 crore and 41.79 lakh equity shares, respectively, by promoters Bhavish Aggarwal and Indus Trust.
SVF II Ostrich (DE) LLC, the company's largest stakeholder with a 21.98 percent holding, sold out 2.38 crore shares in the OFS.
Other selling stockholders include Tekne Private Ventures XV, MacRitchie Investments Pte, Internet Fund III Pte, Matrix Partners India Investments III LLC, Alpha Wave Ventures II LP, and Ashna Advisors LLP.
With the proceeds from the net fresh issue, OLA, which produces electric vehicles (EVs) and some essential EV components (such as motors, battery packs, and vehicle frames at the Ola Futurefactory), plans to use Rs 1,227.64 crore to increase the capacity of its subsidiary OCT's cell manufacturing plant (Ola Gigafactory) from 5 GWh to 6.4 GWh.
Additionally, Rs 1,600 crore will go toward product development and research, and Rs 350 crore will be allocated toward organic growth efforts and commercial expansion. The remaining IPO proceeds will be used for routine business needs.
OLA, which shipped its first electric scooter in December 2021, has maintained a strong top line even though it has been losing money. In actuality, the net loss increased from Rs 1,472 crore in the previous fiscal year to Rs 1,584.4 crore in the fiscal year that ended in March 2024. During the same time, operating revenue jumped to Rs 5,009.8 crore, up 90.4 percent from Rs 2,630.9 crore the year before.
Earnings before interest, tax, depreciation, and amortization (EBITDA) losses increased to Rs 1,267.6 crore in FY24 from Rs 1,252.4 crore in FY23.
With 431 service centers and 870 experience centers operating its direct-to-customer (D2C) omnichannel distribution network throughout India, the firm sold 3.29 lakh units in FY24, more than tripling its previous year's sales of 1.56 lakh units.
By the conclusion of the fiscal year 2024, OLA's market share in the electric two-wheeler (E2W) sector was 35 percent, a considerable increase over the previous financial year's 21 percent.
