Ola’s IPO Draws Huge Interest From Domestic And International Investors

Ola has garnered quite the interest in the build-up to its IPO, which will be one of the biggest offerings from an Indian automotive manufacturer since Maruti Suzuki. Besides the fact that the largest electric two-wheeler manufacturer, in terms of sales, is now valued at $4 billion, Ola’s revenue has grown massively by 90 per cent at ₹5,009 crores – which has further helped attract investors from both domestic and international markets.  

Ola Electric’s IPO is set to open on August 2, with an anchor book size expected to be at $350 million i.e. equivalent to ₹3,300 crores. This represents 45 per cent of the total IPO size which is valued at ₹6,200 crores. Out of this amount, ₹5,500 crore will be available as a fresh issue of shares, and the rest will be offered as an Offer For Sales (OFS) which is 85 million shares to be put up by existing investors. 

Domestic investors like SBI, HDFC MC, Nipon Life India AMC, and UTI AMC, will be able to bid $200 million each. Foreign investors like, Fidelity, Nomura, and Norway’s Norges Bank will be able to bid in the range of $75-100 million each. Ola’s CEO, Bhavish Aggarwal, will participate in the IPO via the OFS (Offer For Sales) and he has already put 37.91 million shares on the block. As a consequence, his holding will also decrease to 37 per cent from 45 per cent after the IPO. 

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

On the sidelines, Ola Electric is also working to establish its presence in international markets. In fact, despite the company’s revenue growing massively, its losses have also increased by 8 per cent in FY2024. However, Ola has assured that this loss is part of the company’s expansion plans, which will require more capital investments in the future, post which the company will reach break-even status. 

As with its IPO, Ola Electric plans to invest ₹1,600 crore from the amount raised for R&D purposes. And while the company has already shelved its electric car plans to focus its attention on the expansion of its two-wheeler portfolio. The brand is already working on launching/ unveiling its debut electric motorcycle this August 15. Bhavish Aggarwal has already given us a small sneak peek of the upcoming bike which you can check out in the tweet below: