Ola Electric IPO: EV Startup Raises INR 2,763 Cr From Anchor Investors

Ola Electric IPO: Public Issue Subscribed 4.27X On The Final Day Of Bidding

SUMMARY

The startup raised INR 2,763 Cr from anchor investors at INR 76 per equity share

Investors like SBI, HDFC, Nippon Life, Nomura Asset Management, Government Pension Fund of Norway, and Fidelity participated in the anchor round

Ola Electric has set a price band of INR 72-76 per equity share for its IPO, which will close on August 6

Bhavish Aggarwal-led Ola Electric has raised INR 2,763 Cr from anchor investors at INR 76 per equity share.

The electric vehicle (EV) startup, whose initial public offering (IPO) will open on Friday (August 2), allotted 36.35 Cr shares to 84 anchor investors.

“The board of directors of the company at its meeting held on August 01, 2024, in consultation with the Book Running Lead Managers to the offer, has finalised allocation of 363,556,135 equity shares, to anchor investors at anchor investor allocation price of INR 76 per equity share,” it said.

Investors like SBI, HDFC, Nippon Life, Nomura Asset Management, Government Pension Fund of Norway, Fidelity, Goldman Sachs Pte, and Societe Generale participated in the anchor round.

The startup said that a total of 10 mutual funds applied through 31 schemes for the shares.

Ola Electric’s IPO will close on August 6. It has set a price band of INR 72-76 per equity share for its public issue. At the upper end of the price band, it would raise INR 6,145.6 Cr.

The IPO comprises a fresh issue of shares worth up to INR 5,500 Cr and an offer-for-sale (OFS) component of up to 8.49 Cr shares.

Its IPO will have 75% allocation towards qualified institutional buyers (QIBs), 15% towards the non-institutional investor (NII) category and 10% towards retail.

Kotak Mahindra, Citigroup, BofA Securities, Goldman Sachs, Axis Capital, and ICICI Securities are some of the book runners for its IPO.

The startup filed its IPO draft papers with the SEBI in December 2023. Initially, the public issue comprised a fresh issue of shares worth INR 5,500 Cr and OFS component of up to 9.51 Cr shares. However, the OFS amount was lowered in its red herring prospectus (RHP).

However, Ola Electric is gearing up for a public market debut when it continues to be a loss-making entity. In the financial year 2023-24 (FY24), its net loss widened 7.6% to INR 1,584.4 Cr from INR 1,472.1 Cr in the previous year. However, operating revenue jumped over 90% to INR 5,009.8 Cr during the year under review from INR 2,630.9 Cr in FY23.