Ola Electric announces price band at Rs 72-76 for Rs 6,100 crore IPO. Check details
Ola Electric on Monday announced the price band of Rs 72-76 for its upcoming initial public offering (IPO) which will open on August 2 and close on August 6.
The IPO comprises a fresh issue of shares worth Rs 5,500 crore and an offer for sale (OFS) of 8,49,41,997 shares, according to the draft prospectus. At the upper price band of Rs 76, the OFS would be worth about Rs 645.56 crore.
Under the OFS, Promoter Bhavesh Aggarwal and the promoter group entity Indus Trust along with the company’s investors like Alpha Wave, Alpine, Matrix Partners India Investment, Internet Fund III, MacRitchie Investments, SVF II Ostrich (DE), Tekne Private Ventures and Ashna Advisors will be offloading their stakes.
Bids can be made for a minimum of 195 equity shares and in multiples of 195 shares thereafter. At least 75% of the IPO has been kept reserved for QIB (qualified institutional buyers), up to 15% for non-institutional investors, and up to 10% for retail investors.
The floor and cap prices are 7.2 and 7.6 times the face value of the equity shares respectively.
Ola Electric is looking to use Rs 1,227 crore of the total net proceeds from the IPO to expand the capacity of its battery cell manufacturing plant, called Ola Gigafactory, from 5 gigawatt hours (GWh) to 6.4 GWh. The plant aims to reach the 6.4 GWh capacity by the end of April 2025, it added in the RHP.
The firm will use Rs 800 crore from the total net proceeds to repay loans taken on by its unit Ola Electric Technologies. It will invest Rs 1,600 crore into research
