Ola Electric Mobility IPO - Date, Price Band, Valuation, and More Details
Overview
Bengaluru-based Ola Electric Mobility is set to launch its Initial Public Offering (IPO) with a price band of ₹72-76 per share. This IPO, which will open for subscription on Friday, August 2, 2024, aims to raise ₹6,145.6 crore through a combination of fresh issue and offer-for-sale.
Quick Facts
- Company: Ola Electric Mobility Limited
- IPO Date: August 2, 2024 - August 6, 2024
- Listing Date: August 9, 2024 (Tentative)
- Price Band: ₹72 to ₹76 per share
- Valuation: ₹33,522 crore (~$4 billion)
IPO Details
| Particulars | Details |
|---|---|
| Issue Type | Book Built Issue IPO |
| Face Value | ₹10 per share |
| Total Issue Size | ₹6,145.56 crore |
| Fresh Issue | ₹5,500.00 crore |
| Offer for Sale (OFS) | ₹645.56 crore |
| Employee Discount | ₹7 per share |
| Minimum Lot Size | 195 shares |
| Minimum Investment (Retail) | ₹14,820 |
| Book Running Lead Managers | Kotak Mahindra, Bofa Securities, Axis Capital, SBI Capital, Citi, Goldman Sachs, ICICI Securities, BOB Capital |
| Registrar | Link Intime India Pvt Ltd |
| Listing Exchanges | BSE, NSE |
Important Dates
| Event | Date |
|---|---|
| IPO Open Date | August 2, 2024 |
| IPO Close Date | August 6, 2024 |
| Basis of Allotment | August 7, 2024 |
| Initiation of Refunds | August 8, 2024 |
| Credit of Shares to Demat | August 8, 2024 |
| Listing Date | August 9, 2024 |
Utilization of Proceeds
The proceeds from the IPO will be allocated toward multiple company initiatives:
- Capital Expenditure: ₹1,227.64 crore
- Repayment of Borrowings: ₹800 crore
- Research and Development: ₹1,600 crore
- Organic Growth: ₹350 crore
Promoters and Shareholders
Key Promoters
- Bhavish Aggarwal
- Indus Trust
Offer for Sale
- Bhavish Aggarwal: 3.79 crore equity shares
- Indus Trust: 41.79 lakh equity shares
- SVF II Ostrich (DE) LLC: The largest shareholder with a 21.98% stake (8.1 crore shares) is offloading 2.38 crore shares.
Shareholding Pre and Post Issue
| Category | Pre-Issue | Post-Issue |
|---|---|---|
| Promoter Holding | 85.77% | To be updated |
| Total Shares | 3,687,072,258 | 4,410,756,468 |
Financials (Restated Consolidated)
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
|---|---|---|---|---|
| Assets | ₹7,735.41 Cr | ₹5,573.17 Cr | ₹5,395.86 Cr | ₹2,112.64 Cr |
| Revenue | ₹5,243.27 Cr | ₹2,782.70 Cr | ₹456.26 Cr | ₹106.08 Cr |
| Profit After Tax | -₹1,584.40 Cr | -₹1,472.08 Cr | -₹784.15 Cr | -₹199.23 Cr |
| Net Worth | ₹2,019.34 Cr | ₹2,356.44 Cr | ₹3,661.45 Cr | ₹1,970.62 Cr |
| Total Borrowing | ₹2,389.21 Cr | ₹1,645.75 Cr | ₹750.41 Cr | ₹38.87 Cr |
Key Metrics
| Key Performance Indicator (as of 31 Mar 2024) | Values |
|---|---|
| Market Capitalization | ₹33,521.75 Cr |
| RoNW | -78.46% |
| P/BV | 13.72 |
| EPS (Pre IPO) | -₹4.30 |
| EPS (Post IPO) | -₹3.59 |
| P/E (Pre IPO) | -17.69 |
| P/E (Post IPO) | -21.16 |
Objectives of the Issue
The company plans to utilize the net proceeds towards:
- Expansion of the capacity of its cell manufacturing plant to 6.4 GWh.
- Repayment or pre-payment of indebtedness.
- Investment in research and product development.
- Organic growth initiatives.
- General corporate purposes.
Business Model and Operations
Founded in 2017, Ola Electric Mobility primarily manufactures electric vehicles and their components such as battery packs, motors, and vehicle frames at the Ola Futurefactory. The company has launched seven models, including the Ola S1 Pro and an upcoming range of electric motorcycles like Diamondhead, Adventure, Roadster, and Cruiser.
Distribution Network (as of October 31, 2023)
- Experience Centers: 870
- Service Centers: 431 (including 429 within experience centers)
Employees (as of March 31, 2024)
- Total Employees: 959
- Permanent Employees: 907
- Freelancers: 52
Conclusion
Ola Electric Mobility’s IPO offers an opportunity for investors to participate in the growing electric vehicle sector. Despite a significant reduction in valuation from its December 2023 figures, the company’s strong focus on R&D, extensive product lineup, and strategic utilization of IPO proceeds underline its growth strategy.
For more detailed information, refer to the Ola Electric IPO Red Herring Prospectus (RHP).
Note: Investors are advised to review all the information and consult with their financial advisor before making any investment decisions.
Apply through Zerodha or other brokerage platforms to participate in the Ola Electric IPO.
Frequently Asked Questions
Q: What is the price band for the Ola Electric Mobility IPO?
A: The price band for the Ola Electric Mobility IPO is set at ₹72-76 per share.
Q: When will the Ola Electric Mobility IPO open for subscription?
A: The Ola Electric Mobility IPO will open for subscription on August 2, 2024.
Q: What is the valuation of Ola Electric Mobility post-IPO?
A: The valuation of Ola Electric Mobility post-IPO is estimated at ₹33,522 crore.
Q: What are the key objectives of the Ola Electric Mobility IPO?
A: The key objectives of the Ola Electric Mobility IPO include capacity expansion, repayment of indebtedness, investment in research and product development, organic growth initiatives, and general corporate purposes.
Q: How to apply for the Ola Electric Mobility IPO?
A: Investors can apply for the Ola Electric Mobility IPO through Zerodha or other brokerage platforms.
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