Ola Electric IPO: Founder Bhavish Aggarwal to sell 47.4 million shares
Ola Electric, is set to sell around 47.4 million shares in the SoftBank Group-backed e-scooter maker, as per the company's preliminary draft papers filed with SEBI on December 22. The proposed issue includes a fresh equity share release of up to ₹5,500 crore and an offer for sale (OFS) of 95,191,195 equity shares at a face value of ₹10.
The process involves a book-building approach, with certain allocations earmarked: 75 percent of the issue for qualified institutional buyers (QIBs); up to 15 percent for non-institutional investors (NIIs); and not more than 10 percent for retail individual bidders. Also Read | Ola Electric IPO: Issue details, objectives, risk factors & more; Check 10 key things to know from DRHP The company is targeting a valuation in the range of $7-8 billion by early 2024.
The dates for the IPO subscription haven't been announced yet, but reports suggest it may commence in early 2024. Neither the offer price nor the IPO price band has been disclosed.
As per the draft red herring prospectus (DRHP), the proceeds from the fresh issue will be allocated for various purposes: - ₹1,226.4 crore for Ola Cell Technologies' Gigafactory project - ₹1,600 crore for research and development (R&D) investments - ₹350 crore for organic growth initiatives and general corporate purposes - ₹800 crore to repay/pre-pay debts of Ola Electric Technologies (OET) Also Read | Ola gears up to introduce Krutrim, India's first own AI: When, where and how to watch the launch The book-running lead managers are 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. Link Intime India is the appointed
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