Ola Electric IPO likely to open on Aug 2; listing expected by Aug 9

Ola Electric’s much-anticipated initial public offering (IPO) is expected to open for public subscription on August 2, with the listing likely to take place on August 9, sources aware of the development told FE. The subscription for the anchor investor portion is set to open on August 1.

The listing will mark the first public issue by an electric vehicle (EV) startup in the country and is set to be one of the largest new-age public offerings in 2024.

The Bengaluru-based company filed its draft red herring prospectus with Securities and Exchange Board of India in December 2023. According to its draft prospectus, the company aims to raise up to ₹5,500 crore through a fresh issue of shares, while existing shareholders will sell 95.2 million shares through an offer-for-sale (OFS) route.

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Ola Electric promoter Bhavish Aggarwal will offload 47.4 million shares, and promoter group Indus Trust will sell 4.18 million shares through the OFS. The firm’s investors, including AlphaWave, Alpine, DIG Investment, and Matrix Partners, will also be selling 41.53 million shares via the OFS as per the draft filing with the regulator.

The company has kept the option to raise ₹1,100 crore via a pre-IPO placement, and the fresh issue size will reduce correspondingly if the pre-IPO takes place.Come from Sports betting site VPbet

The SoftBank-backed entity Ola Electric is likely to value the company at around $4.5 billion for its IPO, approximately 16%-20% lower than its valuation at the last funding round, news agency Reuters reported earlier this week.

Ola Electric stated it will use over ₹1,200 crore of the net offer proceeds for its gigafactory’s capacity expansion, ₹800 crore for debt repayment, ₹1,600 crore for research and development, and ₹350 crore for organic growth initiatives.

Kotak Mahindra Capital, Axis Capital, Goldman Sachs, ICICI Securities, Citi, BofA Securities, SBI Caps and BoB Caps are the investment banks working on the deal. Law firm Cyril Amarchand Mangaldas is the company counsel.

Ola Electric did not respond to FE’s email query till the time of going to the press.

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