Ola Electric IPO garners over $2 billion worth of bids from institutions: Report

Ola Electric Mobility will float its initial public offering (IPO) on August 2

Ola Electric on August 1 received more than $2 billion worth of bids for $330 million quota reserved for big institutions a day ahead of its initial public offering (IPO) launch, reported news agency Reuters citing source.

State Bank of India and HDFC Mutual Funds were allocated shares worth around $30-36 million each in the issue while Nomura, Norges Bank allocated shares worth around $24 million each, Reuters reported.

Ola Electric Mobility will float its initial public offering (IPO) on August 2, and a significant part of the proceeds will be used for capacity expansion of its cell manufacturing plant and revving up R&D.

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The initial share sale will conclude on August 6, and the bidding for anchor investors opened for a day on August 1.

Price band for the issue is set at a range of Rs 72-76 a share.

The company’s proposed IPO is a combination of a fresh issue of equity shares up to Rs 5,500 crore and an offer for sale (OFS) of 8.49 crore equity shares by promoters and investors, the prospectus showed.

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For Ola Electric, the IPO will provide the much-needed impetus to invest in enhancing cell manufacturing capacity and research and development on future technologies and products.

Promoters Bhavish Aggarwal, and Indus Trust will be selling 3.79 crore and 41.79 lakh equity shares respectively in the OFS.

Among investors, SVF II Ostrich (DE) LLC, the largest shareholder in the company with a 21.98 percent stake (or 8.1 crore shares post-conversion of CCPS), offloading 2.38 crore shares in the OFS.

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Alpha Wave Ventures II LP, Alpine Opportunity Fund VI LP, Internet Fund III Pte, MacRitchie Investments Pte, Matrix Partners India Investments III LLC, Tekne Private Ventures XV, and Ashna Advisors LLP are other selling shareholders.