Ride-hailing app Ola Electric’s price band has been set at Rs 72-76. The company’s initial public offering, IPO, is set to open for subscription on August 2, as per multiple media reports.
The IPO is set to close on August 6. Ola CEO Bhavish Aggarwal and the promoter group entity Indus Trust will sell 3.79 crore and 41.79 lakh equity shares, respectively, in the Offer for Sale (OFS).
In addition, stakes will reportedly be sold by Alpha Wave, Alpine, Matrix Partners India Investment, Internet Fund III, MacRitchie Investments, SVF II Ostrich (DE), and Tekne Private Ventures.
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According to the draft prospectus, the IPO will consist of a fresh issue amounting to Rs 5,500 crore and an offer for sale of up to 84.94 million shares. The total issue size is expected to be Rs 6,145.96 crore, bringing the firm's total market capitalization to approximately Rs 33,500 crore.
Retail investors will be allocated 10 percent of the IPO. According to Business Standard, the funds raised from the IPO will be utilized for capital expenditure and research and development purposes.
Ola Electric’s IPO will be one of the biggest IPOs this year, and it is the first IPO in the electric vehicle segment. Meanwhile, with a focus on its IPO, Ola Electric decided to halt its Ola Electric car plans for at least the next two years. This is as per a Reuters report.
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A source speaking to Reuters said that the company’s "focus is all on the two-wheeler market, including bikes, and mass electrification is still some time away—you need to have (charging) infrastructure.”
Despite Ola's success in the EV market, its losses have increased. The company's net loss grew to Rs 1,584.4 crore in fiscal 2024, up from Rs 1,472 crore in the prior fiscal year. However, during this period, its revenue from operations surged to Rs 5,009.8 crore, marking a 90.4 percent increase from Rs 2,630.9 crore the previous year.
