OLA Electric IPO Price Band: The wait for the IPO of OLA Electric Mobility, a leading company in the electric vehicle segment, is now over. The price band for this issue has also been fixed. Shares will be issued under both the new shares and the offer for sale window. However, the company has been facing financial losses, and its losses increased in the financial year 2024.
Key Details of OLA Electric IPO
- Subscription Period: The OLA Electric IPO will be open from August 2 to August 6. For anchor investors, it will open a day earlier, on August 1.
- Price Band: ₹72-76 per share.
- Bid Lot: Investors can bid in lots of 195 shares.
- Discount: Employees will get a discount of ₹7 per share.
- Reservation: 75% of the issue is reserved for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors, and 10% for retail investors.
OLA Electric IPO: Issue Details
Under this IPO, new shares worth ₹5,500 crores will be issued. Shares with a face value of ₹10 will be sold under the offer for sale window, with 8.4 crore shares available for sale. Promoter Bhavish Aggarwal and investors like SoftBank, Temasek, and Matrix Partners India will be lightening their stakes.
Use of Funds
- The money raised from the offer for sale will go to the shareholders selling their shares.
- Out of the money raised from the new shares, ₹1,600 crores will be invested in R&D by the company.
Financial Status
In the financial year 2024, OLA Electric’s losses increased from ₹1,472.08 crores to ₹1,584.40 crores. However, during this period, the company’s revenue jumped from ₹2,782.70 crores to ₹5,243.27 crores.
OLA Electric’s Products
OLA Electric primarily manufactures EVs and EV components. The company has launched seven products so far and announced four new ones. As of March 2024, the company has an omnichannel distribution network with 870 experience centers and 431 service centers.
OLA ELECTRIC IPO GMP
The GMP of OLA ELECTRIC IPO is currently trading around ₹15 which is around 20% of its upper price band of ₹76.
Conclusion
The OLA Electric IPO could be a significant opportunity for investors, but it is essential to invest cautiously considering the company’s current financial situation.
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Disclaimer: Investment in IPO is subject to market risks. The details of IPO given here are not investment advice, please consult your financial advisor before investing