Ola Electric sets price band of Rs 72-76 per share for IPO

Softbank-backed electric vehicle maker Ola Electric will offer shares in the price band of Rs 72 to Rs 76 per equity share, in its initial public offering, according to a newspaper ad the company placed on Monday.

The offering, which will open this week, will include a fresh equity issue of Rs 5,500 crore and an offer for sale (OFS) of 8,49,41,997 shares. At the upper price band of Rs 76, the offer for sale would be worth Rs 645.56 crore. 

Bids can be made for a minimum of 195 equity shares and in multiples of 195 equity shares thereafter. The floor price and the cap price are 7.2 times and 7.6 times the face value of the equity shares, respectively. 

Ola Co-founder and promoter-selling shareholder Bhavish Aggarwal will sell 3.79 crore equity shares, and promoter group Indus Trust will sell 41.79 lakh equity shares in the OFS. 

Ola Electric’s IPO will open for subscription on August 2, while the anchor investor bidding will start a day earlier on August 1. The issue will close on August 6. 

The book-running lead managers for the IPO are Kotak Mahindra Capital, BofA Securities India, Axis Capital, SBI Capital Markets, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, and BOB Capital Markets.

The company’s revenue from operations increased to Rs 5,009.8 crore in FY24 from Rs 2,630.9 crore in FY23. It recorded a loss of Rs 1,584.4 crore compared with Rs 1,472 crore in FY23.