Ola Electric is gearing up for its highly demanding initial public offering (IPO) set to open between August 2 and August 6, 2024. The price range is between Rs 72 and Rs 76 per share, with an issue size of Rs 6,145.56 crore.
What Are the Stakes for Top Executives?
Top executives of Ola Electric are in for a substantial reward. At the upper end of the price band, their combined holdings are valued at approximately Rs 10,850 crore.
Bhavish Aggarwal, the founder and CEO, holds 1,36,18,75,240 shares, amounting to Rs 10,350 crore. Aggarwal will sell 3,79,15,211 shares, potentially earning Rs 288.15 crore.
How is the IPO structured and who are the key sellers?
The IPO includes a fresh issue of Rs 5,500 crore and an offer for sale (OFS) of up to 8.49 crore shares. Matrix Partners India Investments and Alpha Wave Venture are among the notable sellers, with their shares valued significantly above their acquisition costs.
However, some investors, such as Alpine Opportunity Fund and Tekne Private Ventures XV, will incur losses, given their higher average acquisition costs.
Visit the official site now to know more about this IPO.
Investment details
For retail investors, the minimum investment is Rs 14,820 for 195 shares, while the maximum is Rs 192,660 for 2,535 shares. Small and non-institutional investors (sNII) and big non-institutional investors (bNII) have higher minimum investment requirements.
How has Ola Electric performed financially?
Ola Electric has shown a significant increase in revenue, from Rs 2,782.70 crore in 2023 to Rs 5,243.27 crore in 2024. Despite this growth, the company reported a loss of Rs 1,584.40 crore in 2024.
The net worth stands at Rs 2,019.34 crore, with a negative return on net worth (RoNW) of 78.46%.
Also Read: Ola Cabs Rebranded To Ola Consumer; Ride-Sharing Service Ola Share Relaunched
Use of IPO Funds
The funds from the IPO will be used to:
- Expand the cell manufacturing capacity of its subsidiary, OCT.
- Reduce debts of its subsidiary, OET.
- Invest in R&D for product innovation.
- Support growth initiatives and general corporate purposes.
Important Dates and Information
Here are the details of the Ola Electric IPO:
| Detail | Information |
| IPO Date | August 2, 2024 to August 6, 2024 |
| Listing Date | August 9, 2024 |
| Face Value | Rs 10 per share |
| Price Band | Rs 72 to Rs 76 per share |
| Lot Size | 195 Shares |
| Total Issue Size | Rs 6,145.56 crore |
| Fresh Issue | Rs 5,500.00 crore |
| Offer for Sale | Rs 645.56 crore |
| Employee Discount | Rs 7 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Grey Market Premium (GMP) | Rs 16.50 |
| Expected Listing Price | Rs 92.50 |
| Minimum Investment (Retail) | Rs 14,820 |
| Maximum Investment (Retail) | Rs 192,660 |
How to invest
To invest in the Ola Electric IPO:
- Set up your HDFC Sky account online.
- Browse upcoming IPOs on the HDFC Sky platform.
- Use your UPI ID for a seamless investment experience.
Financial Overview (in Crores)
| Metric | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
| Assets | 7,735.41 | 5,573.17 | 5,395.86 | 2,112.64 |
| Revenue | 5,243.27 | 2,782.70 | 456.26 | 106.08 |
| Profit After Tax | -1,584.40 | -1,472.08 | -784.15 | -199.23 |
| Net Worth | 2,019.34 | 2,356.44 | 3,661.45 | 1,970.62 |
| Reserves and Surplus | -2,882.54 | -1,380.03 | -68.83 | 1,999.30 |
| Total Borrowing | 2,389.21 | 1,645.75 | 750.41 | 38.87 |
Conclusion
The Ola Electric IPO is generating significant interest, marking an important step for the company in the EV sector. Investors have a unique opportunity to participate in India’s first pure-play EV stock.
Stay updated and make informed investment decisions to maximize your potential returns.
Also Read: US Stocks Decline and Bond Yields Drop Following Economic Data Release
People May Ask
When is the Ola Electric IPO opening?
The IPO opens on August 2 and closes on August 6, 2024.
What is the price band for the Ola Electric IPO?
The price band is set between Rs 72 and Rs 76 per share.
What is the issue size of the Ola Electric IPO?
The total issue size is Rs 6,145.56 crore.
How can I invest in the Ola Electric IPO?
You can invest through platforms like HDFC Sky, using a simple one-click process.
What will the funds raised from the IPO be used for?
The funds will be used for expanding manufacturing capacity, reducing debt, investing in R&D, and supporting growth initiatives.