Ola electric IPO opens august 2 at ₹72-76 per Share

Electric two-wheeler maker Ola Electric's Initial Public Offering - the biggest by an Indian company so far in 2024 - will open for subscription on August 2 and close August 6. The company has set the price band for the ₹6,146-crore issue at ₹72-76 apiece.

The IPO - the first by an electric vehicle manufacturer - comprises a fresh issue of ₹5,500 crore and an offer for sale of 8.49 crore shares. Bids can be made for a minimum of 197 shares and multiples thereafter.

"I wanted to make sure we price it attractively for the entire investor community in India and in the private rounds, whatever the valuations are, it was very important for us and for me personally, to make sure that we get the whole Indian investor community along on this journey," said Ola's founder, Bhavish Aggarwal on the sidelines of a press meet on Monday to announce the IPO. "We wanted to make sure we appeal to the widest spectrum of investors we can and hence in our judgement felt this is the right price and the response has been very encouraging."


The company aims to use the proceeds from the fresh issue for funding working capital expenditure of arm OCT, ₹800 crore for repayment of the subsidiary's debt, ₹1,600 crore as investment in research and product development, and ₹350 crore for organic growth initiatives and general corporate expenses.

Promoter Bhavish Aggarwal and promoter entity Indus Trust along with Alpha Wave Ventures II, Alpine Opportunity Fund IV, DIG Investment, Internet Fund, MacRitchie Investments, Matrix Partners India Investment, SVF II Ostrich (DE), and Tekne Private Ventures XV will offer shares as part of the offer for sale in the IPO.

The company is a pure electric vehicle (EV) player in India building vertically integrated technology and manufacturing capabilities for EVs and EV components.

Ola Electric's revenue from operations rose 90.42% to ₹5,009.8 crore in FY 24 compared to FY 23. The company's losses widened to ₹1,584.4 crore in FY24 from ₹1,472 crore in the previous year.

Kotak Mahindra Capital, Citigroup Global Markets India, BofA Securities India, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, SBI Capital Markets and BOB Capital Markets are the bankers to the issue.