Ola Electric IPO opens on August 2: Check the company’s financials, price band, listing date

The much-awaited initial public offering (IPO) of Bengaluru-based Ola Electric Mobility Ltd is set to hit the markets this week.

The electric two-wheeler manufacturer announced on Sunday, July 28, that it has fixed the price band for its shares at ₹72-76 apiece while elaborating on other important details of the issue.

If you are planning to invest in the Ola Electric Mobility IPO, here are all the important facts you need to know, such as the company’s operations, financial performance, and issue details, before you make your decision.

Ola Electric operations, manufacturing units and products

Ola Electric Mobility is a pure electric vehicle (EV) player in India and is building vertically integrated technology and manufacturing capabilities for EVs and EV components, including cells.

The company manufactures EVs and certain core EV components like battery packs, motors, and vehicle frames. Its business focuses on capturing the opportunity arising out of the electrification of mobility in India. Going forward, it also seeks opportunities to export its EVs to select international markets.

Since its first product announcement in August 2021, Ola Electric has delivered four products and announced six new products. It commenced delivery of its first EV model, the Ola S1 Pro, in December 2021. This was followed by the delivery of the Ola S1 in September 2022, the Ola S1 Air in August 2023, and the Ola S1 X+ in December 2023.

Last year, on August 15, 2023, it announced other new EV scooter models—the Ola S1 X (2 kWh) and the Ola S1 X (3 kWh), in addition to the Ola S1 X+—and a line-up of motorcycles comprising four models: Diamondhead, Adventure, Roadster, and Cruiser.

It plans to commence delivery of the Ola S1 X (2 kWh) and the Ola S1 X (3 kWh) by the first half of 2024-2025 and the motorcycles in the first half of 2025-26.

Data shows that Ola Electric Mobility enjoyed a 35% market share in the electric two-wheeler (E2W) segment in India by the end of 2023-24, compared with 21% in 2022-23.

Financials

Ola Electric Mobility’s revenue has grown multi-fold over the years. For the financial year 2023-24, its revenue stood at ₹5,243.27 crore, up 88.4% compared with ₹2,782.70 in 2022-23.

However, it is a loss-making entity. In fact, the company’s losses widened to ₹1,584.40 crore in FY24 compared with ₹1,472.08 crore in FY23.

Ola Electric IPO offer size, price band, lot size and other details

The Ola Electric IPO is a 100% book-built issue that aims to raise a total of ₹6,145.56 crore.

The price band for the Ola Electric Mobility IPO has been set at ₹72-76 per share, with the minimum bid quantity (lot size) of 195 shares and in multiples of 195 thereafter. Eligible employees are being offered a discount of ₹7 per share in the bidding.

The IPO is a combination of fresh issuance of 72.37 crore shares of face value of ₹10 each, aggregating to ₹5,500 crore, and an offer-for-sale (OFS) of 8.49 crore shares, aggregating to ₹645.56 crore.

Under the OFS, Ola Electric promoters Bhavish Aggarwal and Indus Trust are offloading 3.79 crore and 41.79 lakh equity shares, respectively. Among investors, SVF II Ostrich (DE) LLC, which is the largest shareholder in the company, is also selling 2.38 crore shares.

Ola Electric has reserved up to 75% of shares of the net public issue (excluding employees' portion) for qualified institutional buyers, 15% for non-institutional investors and the remaining 10% for retail investors.

Notably, the company has reserved up to ₹5.5 crore worth of shares for its employees.

OLA Electric IPO dates

The OLA Electric IPO opens for subscription on August 2 and closes on August 6. The allotment of shares is expected to be finalised on August 7. OLA Electric shares are tentatively scheduled to be listed on both the BSE and the NSE on August 9.

Ola Electric IPO objective

According to its prospectus, Ola Electric Mobility plans to utilise ₹1,227.6 crore of the fresh issue proceeds of ₹5,500 crore on capacity expansion of its cell manufacturing plant to 6.4 GWh from 5 GWh.

The company will use another ₹1,600 crore from the fresh proceeds on research and product development. It added that ₹800 crore will be deployed to repay debts incurred by its subsidiary, OET, and ₹350 crore for organic growth initiatives.