New Delhi: Ola Electric’s highly anticipated initial public offering (IPO) is set to begin on August 2, with the listing expected on August 9, according to sources. The anchor investor portion will be available for subscription on August 1.
This IPO will be the first by an electric vehicle (EV) startup in India and is expected to be one of the largest new-age public offerings of 2024.
The company, based in Bengaluru, filed its draft red herring prospectus with the Securities and Exchange Board of India in December 2023. According to this document, Ola Electric plans to raise up to ₹5,500 crore through a fresh issue of shares. Additionally, existing shareholders will sell 95.2 million shares through an offer-for-sale (OFS) route.
Bhavish Aggarwal, the promoter of Ola Electric, will sell 47.4 million shares, and the promoter group, Indus Trust, will sell 4.18 million shares through the OFS. Investors like AlphaWave, Alpine, DIG Investment, and Matrix Partners will also sell a combined 41.53 million shares through the OFS, as per the draft filing.
The company also has the option to raise ₹1,100 crore through a pre-IPO placement, which would reduce the size of the fresh issue accordingly if it happens.
Supported by SoftBank, Ola Electric is expected to be valued at around $4.5 billion for its IPO, which is about 16%-20% lower than its valuation in the last funding round, according to Reuters earlier this week.
Ola Electric plans to use over ₹1,200 crore of the net offer proceeds for expanding the capacity of its gigafactory, ₹800 crore for debt repayment, ₹1,600 crore for research and development, and ₹350 crore for organic growth initiatives.
