Ola Electric Mobility Ltd., which is into manufacturing of electric two-wheelers, has announced an initial public offering (IPO) to raise upto ₹6,145.56 crore from the capital market.
The price band of the IPO has been fixed at ₹72-76 per equity share of a face value of ₹10 each. The IPO will open on August 2 and close on August 6. Investors can bid for a minimum of 197 shares and in multiples of 197 shares thereafter. The IPO consists of fresh issue of up to ₹5,500 crore and an offer for sale (OFS) of up to 8,49,41,997 equity shares by promoter selling shareholders and investor selling shareholder amounting to ₹645.56 crore at the upper price band. From the proceeds of the fresh issue, about ₹1,228 crore will be used for capital expenditure incurred by the subsidiary OCT; ₹800 crore for repayment or pre-payment, in full or part, of the indebtedness incurred by the subsidiary, OCT; ₹1,600 crore for investment into research and product development; ₹350 crore for expenditure to be incurred for organic growth initiatives and general corporate purposes.
Bhavish Aggarwal, Chairman and Managing Director, Ola Electric Mobility Ltd., while announcing the IPO said, “We are holding a strong leadership position in the Indian automotive market. We have focused our attention in the EV space. We have a portfolio of 7 scooters and have announced to introduce 4 motorcycles.”
“Our model is vertically integrated across R&D and technology, manufacturing, supply chain, sales and service, and charging facilities,” he said, adding that the company was in the process of building its EV hub in Krishnagiri and Dharmapuri districts of Tamil Nadu for which the State Government had allocated 2,000 acres of land.
