Electric Vehicle Maker Ola to Raise Over Rs 6,100 Crore Through IPO
Leading electric vehicle manufacturer Ola Electric has set the price band for its initial public offering between Rs 72 to Rs 76 per share. According to the details, the company aims to raise Rs 6,145 crore at the higher end of the price band and Rs 6,111 crore at the lower end by issuing fresh shares.
The IPO will open for subscription on August 2 and close on August 6, allowing investors to bid for a minimum of 197 shares and in multiples thereafter. Importantly, it consists of a fresh issue worth Rs 5,500 crore and an offer for sale of up to 8.49 crore shares worth Rs 645 crore by existing shareholders.
As per the company founder and MD, the primary aim is to utilize the funds for various business expansion activities. This includes allocating Rs 1,227.6 crore for an EV manufacturing subsidiary’s capital expenditure. Additionally, Rs 800 crore will be used to repay debt while Rs 1,600 crore is dedicated for research and development of new technologies.
Established in Bengaluru, Ola Electric is building capabilities across the entire EV ecosystem from core components to sales. It rolled out its first electric two-wheeler model in December 2021 and has since delivered several scooter variants. The manufacturer also operates a large factory and recently announced plans to set up additional production hubs.
Notably, within nine months of launching, Ola became the leading electric two-wheeler brand in India in terms of monthly registrations. This underscores its grasp of the rising electrified mobility segment in the domestic market and beyond. Investors will be able to subscribe to the issue starting August 2.
