Industry sources said Ola Electric will launch its anchor book on August 1 and the public subscription window will be from August 2 to August 6. Notwithstanding August 3 and 4 being a weekend, the listing is expected to happen on August 9, making Ola Electric the first Indian EV two-wheeler company to list on the bourse. Ola Electric did not comment on the development.
Fundraising and Valuation
The fresh issue share of Ola Electric would raise around $740 million, along with an offer for sale. The company is expected to have a post-money share in the range of $4 billion to $4.25 billion. The funds are planned to finance capital repayments on debt and open up further research and development.
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Market Competition and Advisors
Ola Electric has carved out quite a niche amidst other EV sun competitors, such as TVS Motors, Bajaj Auto, and Ather Energy. The company laid out a revised strategy in a DRHP submitted to SEBI on 22 December 2023. Kotak Mahindra Capital, Axis Capital, Goldman Sachs, ICICI Securities, Citi, BofA Securities, SBI Caps, and BoB Caps manage the IPO, while Cyril Amarchand Mangaldas is acting as legal counsel.
Previous Reports and Shareholder Participation
Ola Electric had mandated Kotak Mahindra Capital and Goldman Sachs as advisors to the IPO, as per sources. At an earlier date in April, this very source had said ANI Technologies, the parent of Ola Cabs, has initiated informal discussions with investment banks to gauge the situation for an IPO for its ride-hailing business.
According to the DRHP, 95.19 million shares are to be offloaded by existing shareholders through OFS. Bhavish Aggarwal will offload 47.3 million shares, while early investors like AlphaWave, Alpine, DIG Investment, and Matrix will sell a combined 47.89 million shares.
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Utilisation of IPO Proceeds
The money raised from the IPO would contribute towards capital investments, repayment of debt, and further research and development activities. Under this strategic allocation would come the cementing of its market position and building a growth trajectory for Ola Electric in the fast-changing EV landscape.
About the Author
Ms Akshita Siddhapura is a Business Analytics student at SCMS-B, passionate about finance and research. She has a keen interest in financial analysis and strategic growth, showing a strong commitment to business and finance.
