Ola Electric Mobility’s Initial Public Offer i.e. IPO will open on August 2. Investors will be able to bid for it till August 6. On August 9, the company’s shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). With this, it will become the first listed electric two-wheeler company.
Through this issue, the company wants to raise Rs 6,145.56 crore. For this, the company is issuing 723,684,210 fresh shares worth Rs 5,500 crore. Whereas, the existing investors of the company are selling 84,941,997 shares worth Rs 645.56 crore through an Offer for Sale i.e. OFS.
The company fixed the price band of the IPO at ₹ 72-₹ 76
Ola Electric has fixed the price band of its IPO at ₹ 72-₹ 76. Retail investors can bid for a minimum of one lot i.e. 195 shares. If you apply for 1 lot per the upper price band of ₹ 76 of the IPO, then you will have to invest ₹ 14,820 for this.
At the same time, retail investors can apply for a maximum of 13 lots i.e. 2535 shares. For this, investors must invest ₹ 192,660 as per the upper price band.
10% of the issue is reserved for retail investors
The company has reserved 75% of the issue for Qualified Institutional Buyers (QIB). Apart from this, about 10% is reserved for retail investors and the remaining 15% is reserved for non-institutional investors (NII).
Last month, SEBI approved Ola Electric to bring an IPO
Last month, the Securities Exchange Board of India (SEBI) approved Ola Electric to bring an IPO. Ola is India’s largest electric two-wheeler manufacturer. The Bengaluru-based company filed a draft red herring prospectus (DRHP) for IPO with SEBI on 22 December 2023.
According to the DRHP, Ola Electric had proposed to sell 9.52 million shares through an offer for sale and raise Rs 5,500 crore by issuing new shares. Company founder Bhavesh Aggarwal alone is going to sell 4.73 crore shares.
Ola Electric Mobility was founded in 2017
Bengaluru-based Ola Electric Mobility was founded in 2017. The company mainly manufactures electric vehicles, battery packs, motors and vehicle frames at the Ola Future Factory. As of March 31, 2024, the company had 959 employees (907 permanent and 52 freelancers).
What is DRHP?
DRHP is a document that contains essential information about the company planning an IPO. It is filed with SEBI and it contains important information about the company. Just like its finances, its promoters, risks of investing in the company, reasons for raising funds, and how the funds will be used, among other things.
