Ola Electric, the country's largest electric two-wheeler maker, is set to hit the capital markets soon. The much talked about public issue will open for subscription on August 2, closing on August 6. For anchor investors the bidding date will be a day earlier on August 1.
Issue size
The company led by Bhavish Aggarwal will issue fresh shares worth Rs 5,500 crore. There will also be an offer for sale worth 8.49 crore equity shares.
Selling shareholders
Aggarwal is himself selling 3.79 crore equity shares in the offer for sale (OFS). Promoter group company Indus Trust is selling 41.78 lakh shares, according to Ola Electric's red herring prospectus.
Some of its investors too are paring there stake through the OFS. These include SVF II Ostrich (DE) LLC, which is its largest investor, and is offloading 2.38 crore shares. Other investors who are selling shares include Sarin Family LLC, Nuvama Private Investments Trust, Matrix Partners India Investments III, Alpine Opportunity Fund, Alpha Wave Ventures, Ab Initio Capital, Ashna Advisors, Internet Fund III Pte, Mac Ritchie Investments and Tekne Private Ventures.
Current shareholding
Promoters hold 45.14 per cent stake in Ola Electric, while 47.19 per cent is with shareholders. Employee Trusts hold 7.67 crore shares in the company.
Company profile
Bhavish Aggarwal founded ANI Technoloies, which runs the ride hailing platform Ola Cabs, back in 2010. Ola Electric was founded in 2017 as a subsidiary of ANI in 2017. In 2020, it acquired Amsterdam-based electric scooter company Etergo BV, which had developed an all electric "App Scooter," although still in concept stage at the time.
Ola Electric commissioned its plant in October 2021 and started selling its first scooter the S1 Pro in 2021. Construction for its gigafactory for cells began in June 2023. Currently Ola sells electric scooters S1 Pro, S1 Air and S1 X.
On August 15, 2023, Ola also announced a line-up of electric motorcycles, including Cruiser, Adventure, Roadster, and its flagship Diamondhead. It expects to begin delivering the motorcycles in the first half of 2026.
The company has seen rapid growth in its electric scooter sales, emerging as the largest e-scooter maker in the country. In the financial year ended March 2024, the company sold 329,618 units, up from 156,251 units in the previous year.
Ola Electric reported a revenue of Rs 5,009 crore in 2023-24, a 90 per cent jump from its revenue of Rs 2,630 crore in the previous financial year.
However, on the back of rising expenses, its loss for the year widened 7.6 per cent to Rs 1,584 crore from Rs 1,472 crore.
It has also warned that it may continue to incur operating losses in the near-term as it invests in its business, expands product portfolio and builds capacity and scale of its operations.
Objects of the Issue
As mentioned above, the Ola Electric IPO includes a fresh issue of shares worth Rs 5,500 crore and an offer for sale by promoters and existing investors.
Part of the proceeds from the fresh issue of shares will be used towards capital expenditure to be incurred by its subsidiary for expanding the capacity of its cell manufacturing plant from 5 GWh to 6.4 GWh. Some of the proceeds will also go into investment in research and product development as well as repayment or prepayment of debts. The money will also be used for organic growth initiatives.
