Ola Electric, the leading Indian electric scooter manufacturer, announces the price band for its upcoming initial public offering (IPO), marking one of the largest IPOs in India this year.
The company reportedly will offer shares at a price range of Rs.72-Rs.76 ($0.86-$0.91) per share.
The much anticipated IPO is expected to rise approximately $740 million, making it the first by an Indian electric vehicle (EV) maker. This milestone comes as India witnesses a gradual yet significant shift towards the adoption of clean vehicles. Currently,
Ola Electric dominates the e-scooter market, poised to capitalize on the growing demand for environmentally friendly transportation solutions.
The IPO will be open for subscription this week, with a portion of shares allocated specifically for certain eligible employees, who will benefit from a ₹7 per share discount.
This strategic move aims to boost employee participation and engagement in the company’s growth trajectory.
Notably, the IPO has already attracted interest from major global investors, including Fidelity, Nomura, and Norges Bank, alongside several prominent Indian mutual funds, as reported by Reuters. Ola Electric plans to issue new shares to raise $660 million, while existing investors, including founder Bhavish Aggarwal, will offload stakes worth approximately $80 million to IPO investors.
The funds raised through the IPO will be directed toward capital expenditure and research and development, underscoring Ola Electric's commitment to innovation and market expansion. A significant 10% of the IPO will be reserved for retail investors, providing an opportunity for individual investors to partake in the company’s growth story.
Ola Eclectics’ IPO is set to be a landmark event, given the company’s prominent position in the EV sector. Founded by Bhavesh Aggarwal, Ola Electric has quickly emerged as a frontrunner in the e-scooter market, driven by its vision to make electric mobility accessible and affordable for the masses.
As India continues to embrace electric mobility, Ola Electric’s IPO represents a significant step towards a sustainable future. The company’s innovative products and strategic market positioning are likely to attract considerable investor interest, setting a positive precedent for future EV-related IPOs in the country.
In conclusion, Ola Electric’s upcoming IPO is a pivotal moment for the company and the Indian EV Industry. With strong investor backing and a clear focus on innovation and expansion, Ola Electric is well-positioned to lead the charge toward a cleaner and greener transportation future.