Ola Electric IPO: Ola Electric Mobility Ltd has announced a price band of Rs 72-76 per share for its initial public offering (IPO), which will open for subscription on August 2. Anchor investor bidding will commence on August 1, with the issue closing on August 6.
The IPO includes a fresh issue of shares worth Rs 5,500 crore and an offer for sale (OFS) of up to 84.94 million shares. At the upper price band, the OFS is valued at Rs 645.96 crore, bringing the total issue size to Rs 6,145.96 crore. This will value the company at about Rs 33,500 crore.
Promoters Bhavish Aggarwal and Indus Trust will be selling 3.79 crore and 41.79 lakh equity shares, respectively, in the OFS.
Among the investors, SVF II Ostrich (DE) LLC, the largest shareholder with a 21.98 per cent stake (or 8.1 crore shares post-conversion of CCPS), will be offloading 2.38 crore shares. 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, known for manufacturing electric vehicles (EVs) and core EV components at its Ola Futurefactory, plans to use Rs 1,227.64 crore from the fresh issue proceeds to expand the capacity of its subsidiary OCT's cell manufacturing plant, Ola Gigafactory, from 5 GWh to 6.4 GWh. The Ola Futurefactory, as of March 2024, is the largest integrated and automated E2W manufacturing plant in India in terms of production capacity.
The company also aims to use Rs 1,600 crore for research and product development, Rs 800 crore to repay debts, and Rs 350 crore for organic growth initiatives. As of June 15, Ola's consolidated debt stood at Rs 996.67 crore.
In its red herring prospectus (RHP), Ola stated that the setup and expansion of the Ola Gigafactory in Krishnagiri district, Tamil Nadu, will be funded through internal accruals and long-term borrowings by its arm, Ola Cell Technologies Pvt Ltd (OCT). Phase 1(a) of the gigafactory, with a capacity of 1.4 GWh, is expected to be completed by March 2024. Phase 1(b) aims to increase the capacity to 5 GWh by October 2024. Phase 2 plans to scale the capacity to 6.4 GWh by April 2025 and up to 20 GWh by the second quarter of 2026.