Ola Electric Mobility Limited is a pure electric vehicle (EV) player in India that is developing vertically integrated technology and manufacturing capabilities for EVs and EV components. The company’s initial public offering (IPO) is open for subscription as of Friday, August 2, and it ends on Tuesday, August 6. Investors may place bids in multiples of 197 equity shares following the minimum of 197 equity shares. Bengaluru-centered Ola Electric Mobility Limited has set a price range of ₹72 to ₹76 per equity share with a face value of ₹10 each.
In addition to a fresh issuance of equity shares up to ₹5,500 crore, the Ola Electric IPO comprises an offer for sale (OFS) of 8.49 crore equity shares by investors and promoters. Under the OFS, Ola Electric’s founder, Bhavish Aggarwal, will sell around 3.8 crore shares.
The business plans to pay down debt accumulated by its subsidiary, OET; support expenditures for organic growth efforts; engage in research and product development; and use the net proceeds for general corporate reasons. Its subsidiary OCT will have to spend capital money to increase the plant’s capacity from 5 GWh to 6.4 GWh, which is categorised as phase 2 of the expansion plan.
The Ola Electric IPO has set aside 75% of its shares for qualified institutional buyers (QIB), 15% for non-institutional institutional investors (NII), and 10% for retail investors.
The OLA Electric IPO’s book running lead managers are Bob Capital Markets Ltd., Goldman Sachs (India) Securities Private Ltd., ICICI Securities Ltd., Axis Capital Ltd., Bofa Securities India Ltd., SBI Capital Markets Ltd., and Kotak Mahindra Capital Company Ltd. Link Intime India Private Ltd. is the registrar for this issue.
Here are some of the key risks listed by the company in its Red-Herring Prospectus (RHP):
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