The much-awaited IPO of this year, Ola Electric is set to open on August 2. The bidding for the IPO valued at Rs 6,146 crore, will begin on August 2nd and end on August 6th at a price range of Rs 72-76 per share.
The IPO will be the first by an automobile company since Maruti Suzuki (then Maruti Udyog) which went public in the year 2003.
Bhavish Aggarwal, CEO of Ola, said, “ We wanted to price it at attractive, aggressive levels so that they (investors) make money," reported TOI.
Aggarwal reportedly stated that the EV industry will not slow down in the country though there might be “cyclical ups and downs, basic subsidy changes or some seasonal factors.”
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He further added that the company’s year-on-year (YoY) growth is 90% and that it is strong and secular that as more companies enter the EV market the scope will further expand.
At the upper price band, the firm's valuation is estimated to be $4 billion - a drop from the $7-8 billion valuation it was targeting a few months ago.
Of the total funds mobilised through the IPO, the company is raising Rs 5,500 through fresh issuance of shares. The rest will be Offer for sale (OFS) by existing investors for Rs 654.96 crore. Thus the total issuance size would amount to Rs 6,145.96 crore rupees in total.
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The company would reportedly use the net proceeds to finance the company’s investment including research and product development, paying debts incurred by its subsidiary, OET; funding expenditures for organic growth initiatives; and general corporate purposes.
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