Ola Electric reveals IPO prices, per share cost to be between ₹72-76

Electric scooter manufacturer Ola Electric has revealed the pricing of its shares ahead of its stock market debut. A newspaper advertisement by the electric two-wheeler manufacturing company showed the brand will keep the pricing of its shares in the price band of ₹72-76, with a ₹7 per share discount for certain eligible employees bidding in the IPO. The Ola IPO will open for subscriptions between August 1 and August 6. This is going to be one of the biggest IPOs by any two-wheeler manufacturer in India. Also, this is going to be one of India's biggest IPOs in 2024.

Reuters, in a previous report, claimed that the Ola Electric IPO will draw investor bids from Fidelity, Nomura and Norges Bank, as well as several Indian mutual funds too. The EV company is currently the biggest stakeholder in the Indian electric two-wheeler market with its S1 range of electric scooters. In recent times, demands for electric vehicles, especially in the two-wheeler segment have grown exponentially, fuelling rapid growth for the ride-hailing aggregator turned electric vehicle manufacturer company.

First IPO by any Indian EV maker

The IPO of Ola Electric includes a fresh share sale of up to ₹5,500 crore and an offer-for-sale of up to 8,49,41,997 shares by its promoters and existing shareholders amounting to ₹645.56 crore. This IPO will be the first by any Indian electric vehicle manufacturer.

This will see the electric two-wheeler manufacturer issuing new shares to raise funds from the market. Also, this will see the SoftBank-backed company's existing investors, including founder Bhavish Aggarwal, offloading their stake of about $80 million to IPO investors. Ola Electric, in its newspaper advertisement, also revealed that 10 per cent of its IPO will be reserved for retail investors.

Ola Electric aims to invest heavily in R&D

Ola Electric has confirmed previously that the company aims to be a major player in the Indian electric vehicle market, not by just introducing electric scooters, but by taking a multi-pronged approach in the EV domain.

While one aspect of its is launching a series of electric motorcycles, the company is also heavily investing in research and development of new cell technology. During a plant visit earlier this year, HT Auto reported how the company is working on different types of battery technologies. which would be used in its future electric vehicles. Ola Electric is working on 4680 battery cells, solid-state batteries as well as sodium-ion batteries also. The EV manufacturer has cleared that the proceeds of the IPO will be used for funding for these research and development as well as capital expenditure.

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