Ola Electric Mobility Raises Rs. 2,763 Crore From Anchor Investors

Utkarsh Agarwal Aug 02, 2024

The IPO consists of fresh issue of up to Rs 55,000 million and an offer for sale (OFS) of up to 84,941,997 equity shares

Ola Electric Mobility, a pure EV (Electric Vehicle) player in India, has garnered Rs. 2,763.03 crore from anchor investors ahead of its initial public offering that opens for public subscription today (August 2, 2024). The company informed the bourses that it allocated 36,35,56,135 equity shares at Rs. 76 per share on Thursday (August 1, 2024) to anchor investors.

Foreign and Domestic Institutions who participated in the anchor were SBI MF, HDFC MF, Nippon MF, UTI MF, Mirae Asset MF, Norges, Nomura, Fidelity, Franklin Templeton, Pictet, Sundaram MF, HDFC Life Insurance Company, Matthews MF, Kotak Mahindra Life Insurance Company, Jupiter MF, Bandhan MF, BNP Paribas MF, Bharti AXA Life Insurance Company, JM Financial MF, Goldman Sachs, Societe Generale, Morgan Stanley, Bengal Finance and Investment and others.

Out of the total allocation of 36,35,56,135 equity shares to the anchor investors, 14,70,10,695 equity shares were allocated to 10 domestic mutual funds through a total of 31 schemes amounting to Rs. 1,117.28 crore (approx.) i.e. 40.43 per cent of the Total Anchor Book Size.

Kotak Mahindra Capital Company, Citigroup Global Markets India, BofA Securities India, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, SBI Capital Markets, and BOB Capital Markets are the book running lead managers and Link Intime India is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

IPO Details

The IPO consists of fresh issue of up to Rs. 55,000 million and an offer for sale (OFS) of up to 84,941,997 equity shares by Promoter Selling Shareholders and Investor Selling Shareholder. The offer also includes a reservation for eligible employees.

The Company is proposing to open its initial public offering of Equity Shares (the “Offer”) today (August 2, 2024) and closes on Tuesday (August 6, 2024). The price band for the Offer has been determined at Rs. 72 – Rs. 76 per equity share.

The IPO will fetch Rs. 6,145.56 crore at the upper end of the price band.

Investors can bid for a minimum of 197 equity shares and in multiples of 197 equity shares thereafter.

The Offer is being made through the Book Building Process, wherein not less than 75 per cent of the net offer shall be available for allocation to Qualified Institutional Buyers, not more than 15 per cent of the net offer shall be available for allocation to Non-Institutional Bidders and not more than 10 per cent of the net offer shall be available for allocation to Retail Individual Bidders.

Ola Electric Mobility, backed by Hyundai Motor Company, will garner close to $100 million for Hyundai’s 2.95 per cent stake in its $734 million (Rs 6,145.56 crore) IPO.

Ola Electric, based in Bengaluru and led by Bhavish Agarwal, is offering a mix of new shares worth up to $657 million (₹5,500 crore) and an offer-for-sale (OFS) of 8.49 crore shares by promoters and investors. At the upper price band of Rs 76, the OFS will raise about $77 million (Rs 645.56 crore) for the sellers. The OFS size has been reduced from the initially planned 9.51 crore shares to 8.49 crore shares.

In the IPO, 75 per cent of the shares are reserved for institutional buyers, 15 per cent for non-institutional investors, and 10 per cent for retail investors.

The proceeds from the fresh issue of shares will be used for capital expenses by its subsidiary OCT, paying off or reducing debts, investing in research and product development, and supporting organic growth.

Ola Electric makes EVs and key EV components like battery packs, motors, and vehicle frames at its Ola Futurefactory. The company aims to capture the growing electric mobility market in India and plans to export EVs to selected international markets. It started delivering its first EV, the Ola S1 Pro, in December 2021, followed by the Ola S1 in September 2022, the Ola S1 Air in August 2023, and the Ola S1 X+ in December 2023.

Ola operates its Futurefactory, Gigafactory, and Battery Innovation Centre in Bengaluru and is building an EV hub in the Krishnagiri and Dharmapuri districts of Tamil Nadu.