Ola Electric IPO: Anchor round on August 1, listing expected by August 9, says report

Ola Electric, a leading Indian electric vehicle (EV) manufacturer, is gearing up for its anchor round as part of its initial public offering (IPO). According to sources cited by CNBC-TV18, the anchor round is slated for August 1, followed by the public issue opening for subscription from August 2 to August 6.

The Bhavish Aggarwal-led company is set to become the first two-wheeler EV company to list on the Bombay Stock Exchange. According to the sources quoted in the report, the expected date for the listing is August 9.

Ola Electric refused to comment on the development.

The EV maker plans to raise ₹5,500 crore through a fresh equity offer. In December 2023, the company filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). It said the company will offer 95.12 million shares at a face value of ₹10 per share through the offer-for-sale (OFS). Bhavish Aggarwal will sell 47.3 million of the total shares offered from his shareholding.

Ola Electric competes with other market operators like TVS Motors, Bajaj Auto, and Ather Energy. The company aims to use the money raised from the public issue for company capex, debt repayment, and research and development (R&D).

Mint reported earlier that Ola Electric's market share was 50 per cent in the first quarter of the financial year 2024-25. According to the current capacity figures, the company can assemble up to 1 million vehicles. According to the report, Ola Electric can also combine motors, batteries, and electronic EV components vertically.

“We expect EV penetration to continue and grow from 5 per cent in FY24 to 20 per cent in FY30, implying a 30 per cent CAGR,” Mint reported on July 9.

Investment banks such as Kotak Mahindra Capital, Axis Capital, Goldman Sachs, ICICI Securities, Citi, BofA Securities, SBI Caps, and BOB Caps are working on the deal, while Cyril Amarchand Mangaldas (CAM) is the legal advisor.

According to the CNBC-TV18 report, Ola Electric was valued at $5.4 billion after its September 2023 funding round, which was led by Temasek.