Ola Electric IPO Price Band Set At ₹ 72 - ₹ 76 Per Share

Ola Electric has fixed the price band for its much-awaited initial public offering (IPO) at ₹ 72-76 per share. The IPO will open for subscription from August 2 to 6. The Ola Electric IPO is a significant milestone for the electric vehicle industry in India and will be closely watched by investors.

The company aims to raise ₹ 5,500 crore through a fresh issue and another ₹ 646 crore via an offer for sale. The funds will be utilised for expanding cell manufacturing capacity, research and development, and debt repayment.  The IPO comprises a fresh issue of shares and an offer for sale (OFS) of up to 8.4 crore shares by existing shareholders including promoter Bhavish Aggarwal, SoftBank, Temasek, and Matrix Partners India. The issue is divided into quotas for institutional investors (75%), non-institutional investors (15%), and retail investors (10%). Investors can bid for a minimum of 195 shares and in multiples thereof, with eligible Ola employees receiving a discount of ₹ 7 per share.

Also read: Ola Electric’s IPO Likely To Hit On August 2, More Details On July 29

The IPO valuation of ₹ 33,522 crore at the upper price band marks a significant downsizing from the company's initial expectations. This reflects the overall market sentiment and investor caution amid global economic uncertainties.

Also read: IPO-Bound Ola Electric’s Revenue Cross ₹ 5,000 Crores, Losses Increase

While Ola Electric's IPO is a landmark event for the Indian electric vehicle industry, it will be crucial to monitor the investor response and the company's performance post-listing. The success of the IPO could potentially attract more investments into the EV sector. Also read about the upcoming electric motorcycle here.