Ola Electric Mobility, the electric vehicle manufacturer, is set to launch its IPO on August 2, with plans to issue new shares worth Rs 5,500 crore and an offer-for-sale (OFS) of 8.49 crore equity shares. The price band for this public issue will be announced on July 29. The IPO will close on August 6, with the anchor book opening for a day on August 1.
Selling Shareholders in Ola’s IPO:
Promoters Bhavish Aggarwal and Indus Trust will sell 3.79 crore and 41.79 lakh equity shares, respectively, in the OFS. SVF II Ostrich (DE) LLC, the largest shareholder with a 21.98% stake, will offload 2.38 crore shares. Other selling shareholders include Alpha Wave Ventures II LP, Alpine Opportunity Fund VI LP, Internet Fund III Pte, MacRitchie Investments Pte, Matrix Partners India Investments III LLC, Tekne Private Ventures XV, and Ashna Advisors LLP. Additionally, the company has reserved shares worth up to Rs 5.5 crore for its employees.
Share Allocation:
Of the net public issue (excluding employees’ portion), 75% of shares are reserved for qualified institutional buyers, 15% for non-institutional investors (high-net-worth individuals), and 10% for retail investors.
Pre-IPO Shareholding:
Promoters, including Bhavish Aggarwal and Indus Trust, hold a 45.14% stake, public shareholders own 47.19%, and employee trusts hold 7.67%.
Use of IPO Proceeds:
Ola plans to use Rs 1,227.64 crore for capacity expansion of its subsidiary OCT’s cell manufacturing plant (Ola Gigafactory) from 5 GWh to 6.4 GWh. Rs 800 crore will go towards repaying subsidiary OET’s debt, which stood at Rs 996.67 crore as of June 15. The company will allocate Rs 1,600 crore for research and product development, Rs 350 crore for business expansion through organic growth, and the remaining funds for general corporate purposes.
Financial Performance:
Ola, which delivered its first EV scooter in December 2021, has seen significant revenue growth despite being loss-making. For the fiscal year ending March 2024, net loss widened to Rs 1,584.4 crore from Rs 1,472 crore the previous year. Revenue from operations surged by 90.4% to Rs 5,009.8 crore from Rs 2,630.9 crore. EBITDA loss stood at Rs 1,267.6 crore, up from Rs 1,252.4 crore. The company sold 3.29 lakh units in FY24, more than doubling the 1.56 lakh units sold in the previous year, capturing a 35% market share in the electric two-wheeler (E2W) segment.
IPO Timeline:
- Allotment Date: August 7
- Credit to Demat Accounts: August 8
- Listing Date: August 9
Merchant Bankers:
Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, SBI Capital Markets, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, and BOB Capital Markets are the merchant bankers for this issue.
