Bhavish Aggarwal, the founder of Ola Electric, is set to sell around 47.4 million shares in the SoftBank Group-backed e-scooter maker, according to the company’s draft papers filed with SEBI on December 22.
The proposed issue includes a fresh equity share release of up to ₹5,500 crore and an offer for sale (OFS) of 95,191,195 equity shares at a face value of ₹10. The process involves a book-building approach, with certain allocations designated: 75 percent of the issue for qualified institutional buyers (QIBs); up to 15 percent for non-institutional investors (NII); and not more than 10 percent for retail individual bidders.
Read also | Ola Electric IPO: Issue details, targets, risk factors & more; Check out 10 key things to know from DRHP
The company is targeting a valuation in the range of $7-8 billion by early 2024. The dates for the IPO subscription have not yet been announced, but reports suggest that it may begin in early 2024. Neither the offering price nor the IPO price band was revealed.
Use of Funds
According to the draft red herring prospectus (DRHP), the proceeds of the fresh issue will be allocated for various purposes:
– ₹1,226.4 crore for Ola Cell Technologies’ Gigafactory project
– ₹1,600 crore for research and development (R&D) investments
– ₹350 crore for organic growth initiatives and general corporate purposes
– ₹800 crore to repay/advance debts of Ola Electric Technologies (OET)
Read also | Ola gears up to introduce Krutrim, India’s first AI of its own: When, where and how to watch the launch
The book-running lead managers are Kotak Mahindra Capital, Citigroup Global Markets India, BofA Securities India, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, SBI Capital Markets and BOB Capital Markets. Link Intime India is the nominated registrar of the offer.
Ola’s Financial Performance
In the fiscal year 2023, Ola Electric witnessed a large increase in revenue from operations, soaring to ₹2,630.93 crores from ₹373.42 crore in the previous year. For the quarter ended June 30, 2023, the income from operations was reported at ₹1,242.75 crores.
Notably, the company emerged as a leader among Indian electric 2-wheelers (E2Ws) and original equipment manufacturers (OEMs) in terms of revenue from E2W sales in FY23.
Also Read: Ola co-founder’s AI venture keeps most details out for the future
On November 17, Ola Electric underwent a pivotal transformation into a public company, a crucial step in its preparations for an IPO. That milestone involved a corporate restructuring and necessitated a change in the company’s name from Ola Electric Mobility Private Limited to Ola Electric Mobility Limited. The conversion from a private limited company to a public company is a mandatory procedure for companies aspiring to be listed on the stock exchange.
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Published: 23 Dec 2023, 08:14 IST
(tagsTo Translate)business