Ola Electric Mobility Ltd is preparing to launch its highly anticipated Initial Public Offering (IPO) on August 2, 2024. This significant move marks Ola Electric’s entry into the stock market and offers investors a chance to buy shares in one of the leading electric vehicle manufacturers in India. Here’s a detailed look at the upcoming IPO, including key information from the Red Herring Prospectus (RHP) and what potential investors should be aware of.
IPO Details:
- IPO Launch Date: August 2, 2024
- Price Band: ₹72 to ₹26 per share
- IPO Closing Date: August 6, 2024
- Total Issue Size: ₹6,145.96 crore
- Offer for Sale (OFS): ₹645.96 crore
- New Issue: ₹5,500 crore
The IPO will consist of an offer for sale of up to 84.94 million shares and a new issue of ₹5,500 crore. The OFS, valued at ₹645.96 crore, will be the upper end of the price range. The total market value of Ola Electric is anticipated to be around ₹33,500 crore following the IPO.
Key Investors and Stakeholders:
The OFS portion will see significant share sales from key stakeholders. Promoters Bhavish Aggarwal and Indus Trust will offload 3.79 crore and 41.79 lakh equity shares, respectively. Additionally, SVF II Ostrich (DE) LLC, Ola Electric’s largest shareholder with a 21.98% stake (approximately 8.1 crore shares), will sell 2.38 crore shares through the OFS.
IPO Allocation and Listing Dates:
- Basis of Allocation: August 7, 2024
- Refunds and Share Deposits: August 8, 2024
- Listing on BSE and NSE: August 9, 2024
Investors can expect the basis of share allocation to be finalized on August 7. Refunds will be processed on August 8, and shares will be credited to allottees’ demat accounts on the same day. The shares are expected to debut on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on August 9.
Book Running Lead Managers and Registrar:
The IPO is being managed by a group of leading financial institutions. The book running lead managers include Kotak Mahindra Capital Company Ltd, BofA Securities India Ltd, Axis Capital Ltd, SBI Capital Markets Ltd, Citigroup Global Markets India Private Ltd, Goldman Sachs (India) Securities Private Ltd, ICICI Securities Ltd, and BOB Capital Markets Ltd. The registrar for the issue is Link Intime India Private Ltd.
Promoter and Shareholding Structure:
Bhavish Aggarwal, the company’s promoter, holds a substantial stake in Ola Electric. Out of the total issued, subscribed, and paid-up equity share capital, Aggarwal owns 36.94%, amounting to 1,361,875,240 equity shares with a face value of ₹10 each.
Risks and Considerations:
Investors should carefully evaluate the risks associated with the Ola Electric IPO. As with any investment, there are inherent risks, including market volatility and the company’s performance post-listing. It is crucial for potential investors to review the RHP thoroughly and consider consulting with financial advisors to understand the investment’s potential benefits and risks.
The Ola Electric IPO represents a significant opportunity for investors looking to participate in the electric vehicle revolution. With a substantial issue size and notable stakeholders involved, this IPO is expected to attract considerable attention from both retail and institutional investors.
For the latest updates and detailed information on the Ola Electric IPO, keep an eye on official announcements and consult with financial experts to make an informed investment decision.
