Ola Electric to Launch IPO for Expanding EV Infrastructure

Ola Electric Mobility will launch its IPO on August 2, with proceeds used for expanding its cell manufacturing plant and R&D. The IPO includes a fresh issue of Rs 5,500 crore in equity shares. Founder Bhavish Aggarwal will offload 3.8 crore shares. The initiative focuses on enhancing production and developing new technologies.

Ola Electric Mobility is set to float its initial public offering (IPO) on August 2, with plans to use significant proceeds for expanding the capacity of its cell manufacturing plant and intensifying research and development efforts.

According to the red herring prospectus (RHP), the initial share sale will conclude on August 6, and bidding for anchor investors will open for a day on August 1. The IPO will include a fresh issue of equity shares worth up to Rs 5,500 crore and an offer for sale (OFS) of 8.49 crore equity shares by promoters and investors, including almost 3.8 crore shares offloaded by founder Bhavish Aggarwal.

Ola Electric plans to utilize Rs 1,227.6 crore from the IPO proceeds for expanding its cell manufacturing plant capacity from 5 GWh to 6.4 GWh. Additionally, Rs 1,600 crore will be allocated for research and product development, Rs 800 crore for debt repayment, and Rs 350 crore for organic growth initiatives. Phase 1 (a) and 1 (b) of the Ola Gigafactory's expansion in Tamil Nadu will be funded from internal accruals and long-term borrowings, with completion slated by October 2024 and phase 2 extending capacity to 20 GWh by Q2 2026. Ola Electric also plans to launch new electric motorcycles and expand its product portfolio by fiscal 2026.