The OLA Electric IPO is a book-built issue totaling ₹6,145.56 crores. This issue comprises a fresh issue of 72.37 crore shares, raising ₹5,500 crores, and an offer for sale of 8.49 crore shares, amounting to ₹645.56 crores. The IPO bidding opened on August 2, 2024, and closed on August 6, 2024, with the allotment finalized on Wednesday, August 7, 2024. The shares were listed on the BSE and NSE on August 9, 2024. The IPO price band was set between ₹72 and ₹76 per share, with a minimum application lot size of 195 shares.
Retail investors needed a minimum investment of ₹14,820, while sNII investors required a minimum of 14 lots (2,730 shares) amounting to ₹207,480, and bNII investors needed 68 lots (13,260 shares), amounting to ₹1,007,760. Additionally, up to 797,101 shares were reserved for employees at a ₹7 discount to the issue price.
| Price Details | BSE | NSE |
|---|---|---|
| Final Issue Price | ₹76 | ₹76 |
| Open | ₹75.99 | ₹76.00 |
| Low | ₹75.99 | ₹76.00 |
| High | ₹91.18 | ₹91.20 |
| Last Trade | ₹91.18 | ₹91.20 |
| IPO Date | August 2, 2024 to August 6, 2024 |
| Listing Date | August 9, 2024 |
| Face Value | ₹ 10 per sha / Share |
| Price Band | ₹ 72 to ₹ 76 / Share |
| Lot Size | 195 Shares |
| Total Issue Size | 808,626,207 share (Aggregating up to ₹6,145.56 Cr) |
| Fresh Issue | 723,684,210 (Aggregating up to ₹5,500.00 Cr) |
| Offer for Sale | 84,941,997 (Aggregating up to 645.56 Cr) |
| Employee Discount | Rs 7 per s |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 3,687,072,258 |
| Share holding post issue | 4,410,756,468 |
| Market Maker portion |
Ola Electric IPO opens on August 2, 2024, and closes on August 6, 2024.
| 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 |
| Cut-off time for UPI mandate confirmation | August 6, 2024 |
Investors can place bids for a minimum of 195 shares and in multiples thereof. The table below outlines the minimum and maximum investment for retail investors and High Net Worth Individuals (HNIs) in terms of the number of shares and the corresponding investment amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 195 | Rs.14,820 |
| Retail (Max) | 13 | 2,535 | Rs.192,660 |
| S-HNI (Min) | 14 | 2,730 | Rs.207,480 |
| S-HNI (Max) | 67 | 13,065 | Rs.992,940 |
| B-HNI (Min) | 68 | 13,260 | Rs.1,007,760 |
| HNI (Min) |
| Share Holding Pre Issue | 85.77% |
| Share Holding Post Issue |
The OLA Electric IPO offers a total of 808,699,625 shares, allocated as follows: 242,370,750 shares (29.97%) to Qualified Institutional Buyers (QIBs), 121,185,387 shares (14.99%) to Non-Institutional Investors (NIIs), 80,790,252 shares (9.99%) to Retail Individual Investors (RIIs), 797,101 shares (0.10%) reserved for employees, and 363,556,135 shares (44.96%) to Anchor investors. In the event of oversubscription, 414,308 RIIs will receive a minimum of 195 shares each, while 14,796 small NIIs (sNIIs) and 29,593 big NIIs (bNIIs) will each receive a minimum of 2,730 shares.
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares Offered | 363,556,135 44.96% |
NA |
| Market Maker Shares Offered | |
|
| Other Shares Offered | |
|
| QIB Shares Offered | 242,370,750 (29.97%) |
NA |
| NII (HNI) Shares Offered | 121,185,387 (14.99%) |
|
| bNII > ₹10L | 80,790,252 (9.99%) |
29,593 |
| sNII < ₹10L | 40,395,135 (5.00%) |
14,796 |
| Retail Shares Offered | 80,790,252 9.99% |
414,308 |
| Employee Shares Offered | 797,101 0.10% |
NA |
| Total Shares Offered | 808,699,625 100% |
The OLA Electric IPO raised ₹2,763.03 crores from anchor investors. The anchor bidding took place on August 1, 2024. Below is the list of anchor investors who participated in the OLA Electric IPO.
| Bid Date | 2024-08-31 |
| Shares Offered | 363,556,135 |
| Anchor Portion Size (In Cr.) | 2,763.03 |
| Anchor lock-in period end date for 50% shares (30 Days) | September 29, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | November 30, 2024 |
Founded in 2017, Ola Electric Mobility Limited is an electric vehicle company specializing in the manufacturing of electric vehicles and essential components like battery packs, motors, and vehicle frames at its Ola Futurefactory. Since August 2021, the company has introduced seven new products and announced four additional ones. The Ola S1 Pro, their first EV model, was delivered in December 2021, followed by the Ola S1, Ola S1 Air, Ola S1 X, and Ola S1 X+ in subsequent years.
On August 15, 2023, Ola Electric unveiled new EV models and a series of motorcycles, including the Diamondhead, Adventure, Roadster, and Cruiser. As of October 31, 2023, the company operates an extensive omnichannel distribution network across India, which includes 870 experience centers and 431 service centers (with 429 of these located within experience centers), in addition to the Ola Electric website. In FY 2023, about 75% of the two-wheeler exports from India were directed to Africa, Latin America (LATAM), and Southeast Asia, while domestic supply of electric two-wheelers (E2W) remained limited.
Ola Electric's business model is built on three scalable platforms: a research and development (R&D) and technology platform focused on in-house design and development of EV technologies and components; a flexible production and supply chain platform; and a direct-to-consumer (D2C) omnichannel sales platform. As of March 31, 2024, the company employed 959 individuals, including 907 permanent employees and 52 freelancers, who are primarily dedicated to research and development, including product development, vehicle and software development, vehicle design, and cell development.
The market capitalization of the OLA Electric IPO is ₹33,521.75 crores as of March 31, 2024. Key performance indicators (KPIs) reflect the company's financial and operational status up to that date.
| KPI | Values |
|---|---|
| ROE | -78.46% |
| ROCE | |
| Debt/Equity | |
| RoNW | |
| P/BV | 13.72 |
| PAT Margin (%) |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | -4.3 | -3.59 |
| P/E (x) | -17.69 | -21.16 |
Note: The Pre-IPO Earnings Per Share (EPS) is calculated based on the pre-issue shareholding as of the date mentioned in the Red Herring Prospectus (RHP) and the latest fiscal year earnings available as of March 31, 2024. The Post-Issue EPS is calculated based on the post-issue shareholding and the annualized fiscal year earnings as of March 31, 2024, as detailed in the RHP.
The company plans to utilize the net proceeds from the OLA Electric IPO to fund several key objectives:
Capital Expenditure: Expanding the capacity of its subsidiary OCT's cell manufacturing plant from 5 GWh to 6.4 GWh, which is part of phase 2 of their expansion plan (the "Project").
Debt Repayment: Repayment or partial pre-payment of the debt incurred by its subsidiary, OET.
Investment in R&D: Enhancing research and product development efforts.
Organic Growth Initiatives: Funding expenditures for organic growth strategies.
General Corporate Purposes.
OLA Electric IPO Review (May Apply) [Dilip Davda]:
The company, primarily focused on electric two-wheelers (E2W), is emerging as a leader in the sector. With numerous competitors entering the market, the competition is intensifying. Ola has outlined a clear future strategy, including the development of its future factory and Gigafactory to stay competitive. The company is also planning to expand into electric bikes (E-2W), three-wheelers, cars, and the significant 4680 Li-ion battery technology, aiming to establish itself as a global hub for EV batteries.
While the company’s revenue has been growing year-on-year, it has also shown improvement in reducing its losses. However, it may take some more time before the company can achieve profitability. This makes the OLA Electric IPO a long-term investment opportunity. Well-informed investors might consider allocating moderate funds for long-term growth.
Ola Electric Mobility Limited |
Link Intime India Private Ltd |
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