Ola Electric IPO: Here are the top 10 things to know for investors keen on the issue
Ola Electric filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (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. Bhavish Aggarwal, the founder of Ola Electric, is set to sell around 47.4 million shares in the SoftBank Group-backed e-scooter maker.
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.
Also Read | Ola Electric IPO: Issue details, objectives, risk factors & more; Check 10 key things to know from DRHP On November 17, Ola Electric underwent a pivotal transformation into a public company, a crucial step in its preparations for an IPO. This involved corporate restructuring and necessitated a change in the company's name from Ola Electric Mobility Private Limited to Ola Electric Mobility Limited. The conversion from a private limited company to a public company is a mandatory procedure for firms aspiring to be listed on the stock exchange.
How much allocation for each category of investor? 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. Funds Target: 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. Bhavish
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