Ola Electric, a leading player in India’s electric two-wheeler market, is launching its highly anticipated initial public offering (IPO) today, August 2, 2024. The IPO will remain open for subscription until August 6, with the basis of allotment scheduled for August 7. Investors are keenly watching this development, as Ola Electric holds a significant 35% market share in the electric two-wheeler segment for the fiscal year 2024.
Key Details of the Ola Electric IPO
The price band for the IPO has been set between ₹72 and ₹76 per equity share, each with a face value of ₹10. The IPO includes an offer for sale (OFS) of 8.49 crore equity shares by investors and promoters, with Bhavish Aggarwal, the company’s CEO, selling around 3.8 crore shares. The IPO is structured to reserve 75% of its shares for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors. The lot size is 195 equity shares, and multiples thereof.
IPO Objectives and Use of Proceeds
The proceeds from the Ola Electric IPO will be utilized for several key purposes:
- Debt Repayment: Addressing existing financial obligations.
- Organic Growth: Funding for expansion and development initiatives.
- Research and Development: Investing in innovative product development.
- General Corporate Purposes: Supporting overall business operations and growth.
Expert Opinions on the Ola Electric IPO
Tarun Singh, Managing Director of Highbrow Securities, highlights the promising aspects of Ola Electric’s IPO, particularly its focus on market expansion and participation in the government’s Production-Linked Incentive (PLI) scheme for scooters and battery businesses. The PLI scheme is crucial as it helps offset operational costs, providing a competitive edge in the market. Singh also notes that Ola Electric’s identification of key international automotive markets, including Asia, Latin America (LATAM), and Africa, can potentially unlock significant revenue streams in the long term, offering investors a glimpse into the company’s future profitability.
Key Dates and Logistics
- IPO Opening Date: August 2, 2024
- IPO Closing Date: August 6, 2024
- Basis of Allotment: August 7, 2024
- Credit of Shares to Demat Accounts: August 8, 2024
- Listing Date on BSE and NSE: August 9, 2024
Lead Managers and Registrar
The book-running lead managers for the IPO 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. The registrar for the issue is Link Intime India Private Ltd.
Should You Subscribe to the Ola Electric IPO?
The Ola Electric IPO presents an exciting opportunity for investors. The company’s strong market position, participation in government incentives, and ambitious international expansion plans make it a compelling option. However, potential investors should carefully consider the IPO’s pricing and their own financial goals before making a decision.
