Ola Electric Mobility Ltd has set a price band of Rs 72-76 a share for its initial public offering that will open for subscription on 2 August.
The anchor investor bidding will start on August 1 and the issue will close on August 6.
The issue comprises a fresh issue of Rs 5500 crore and an offer for sale of upto 84.94 million. On the upper price band, OFS comes at Rs 645.96 crore. The total issue size will be at Rs 6145.96 crore. Total mcap of the firm will be at around Rs 33500 crore.
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.
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.
OLA, which manufactures electric vehicles (EVs) and certain core EV components (like battery packs, motors, and vehicle frames at the Ola Futurefactory) intends to spend Rs 1,227.64 crore out of the net fresh issue proceeds, for the capacity expansion of subsidiary OCT's cell manufacturing plant (Ola Gigafactory) from 5 GWh to 6.4 GWh.
The Ola Futurefactory is the largest integrated and automated E2W manufacturing plant in India (in terms of production capacity) by an E2W-only OEM (original equipment manufacturer), as of March 2024.
Furthermore, through the fresh issue money, it will repay the debt of Rs 800 crore incurred by its subsidiary, OET. As of June 15 this year, its debts amounted to Rs 996.67 crore on a consolidated basis.
In addition, Rs 1,600 crore will be spent on research and product development, and Rs 350 crore will be used for business expansion through organic growth initiatives. The remainder of the IPO funds will be utilised for general corporate purposes.
OLA, which delivered its first EV scooter in December 2021 continued to record robust topline, although it has been loss making. In fact, the net loss has widened to Rs 1,584.4 crore in the fiscal year ended March 2024, from Rs 1,472 crore in the previous fiscal. Revenue from operations during the same period spiked to Rs 5,009.8 crore, up by 90.4 percent from Rs 2,630.9 crore in the previous year.
The loss at the EBITDA level (earnings before interest, tax, depreciation and amortisation) stood at Rs 1,267.6 crore in FY24, widening from a loss of Rs 1,252.4 crore in FY23.
The company, which operates its direct-to-customer (D2C) omnichannel distribution network across India, comprising 870 experience centres and 431 service centres, sold 3.29 lakh units in the year gone by (FY24), more than doubling from the sales of 1.56 lakh units in the previous year.
OLA had a 35 percent market share in the electric two-wheeler (E2W) segment by the end of fiscal 2024, up significantly from 21 percent in the previous financial year.
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