Ola Electric IPO- Ola has consistently recorded strong revenue, although it is running in loss. The company’s net loss has increased to Rs 1,584.4 crore in the financial year ended March 2024.
Highlights
Bhavish Aggarwal will sell his 3.79 crore shares through OFS in Ola IPO.
Ola Electric IPO has reserved shares worth up to Rs 5.5 crore for employees.
The company operates its direct-to-customer (D2C) omnichannel distribution network across India.
New Delhi. The IPO of Ola Electric Mobility, which has a 35 percent share in the country’s electric two-wheeler market, will open on August 2. Investors will be able to invest in IPOs till August 6. New shares worth Rs 5500 crore will be issued in the issue while 8.49 crore equity shares will be sold under Offer for Sale (OFS). The price band of the IPO has not been decided yet. The price band may be announced tomorrow.
Allotment of shares after subscription is expected to be completed by August 7. While Ola IPO shares will be credited to the demat accounts of successful investors by August 8. The company’s shares may be listed on BSE and NSE on August 9.
Bhavish Aggarwal will sell 3.79 crore shares
The company’s promoter Bhavish Aggarwal will sell his 3.79 crore and Indus Trust 41.79 lakh equity shares through OFS. Apart from this, SVF II Ostrich (DE) LLC, the largest shareholder with 21.98 percent stake in the company, will also sell 2.38 crore shares. MacRitchie Investments PTE, Matrix Partners India Investments III LLC, Techne Private Ventures XV, and Aashna Advisors LLP are other shareholders.
10 percent shares reserved for retail investors
In Ola Electric IPO, shares worth up to Rs 5.5 crore have been reserved for employees. 10 percent are reserved for retail investors. 75 percent shares are reserved for qualified institutional buyers and 15 percent shares are reserved for non-institutional investors (high net worth individuals)
Here the money raised from the IPO will be used
Ola plans to use Rs 1227.64 crore from the proceeds from the net fresh issue for the cell manufacturing plant (Ola Giga Factory) of subsidiary company OCT. The company will spend it to increase its capacity from 5 GWh to 6.4 GWh. Apart from this, the company will repay the loan of Rs 800 crore raised by its subsidiary company OET with the money from the new issue. Rs 1600 crore will be spent on research and product development.
The company is running in loss
Ola, which delivered its first EV scooter in December 2021, has consistently recorded strong revenue, although it is running in loss. The company’s net loss has increased to Rs 1,584.4 crore in the financial year ended March 2024, from Rs 1,472 crore in the previous financial year. During the same period, revenue grew to Rs 5,009.8 crore, up 90.4 per cent from Rs 2630.9 crore in the previous year.
The company operates its direct-to-customer (D2C) omnichannel distribution network across India, which includes 870 experience centers and 431 service centers. The company sold 3.29 lakh units last year (FY24), more than double the sales of 1.56 lakh units in the previous year. OLA had a market share of 35 per cent in the electric two-wheeler (E2W) segment by the end of FY24.(news18)
