Ahead Of IPO, Ola Electric Raises Rs 2,763 Cr From Anchor Investors

Ola Electric Mobility, an electric two-wheeler manufacturer, announced on Thursday, that it has secured Rs 2,763 crore from anchor investors ahead of its initial public offering (IPO).

The anchor round included participation from various investors, including Foreign Portfolio Investors (FPIs), domestic mutual funds, and insurance companies, as per a circular uploaded on the BSE's website.

Among the notable participants in the anchor round were SBI Mutual Fund, HDFC Mutual Fund, Nippon India Mutual Fund, Sundaram Mutual Fund, Bandhan Mutual Fund, Bharti Axa Life Insurance Company, Kotak Mahindra Life Insurance Company, Government Pension Fund Global, Nomura India Investment Fund, Goldman Sachs (Singapore) Pte Ltd, and Fidelity.

According to the circular, Ola Electric Mobility has allotted 36.35 crore equity shares to 84 funds at a price of Rs 76 per share, amounting to a total transaction size of Rs 2,763 crore. The IPO, with a price band of Rs 72 to Rs 76 per share, will be open for public subscription from August 2 to August 6.

The IPO comprises 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, valued at Rs 645.56 crore at the upper end of the price band, by promoters and investors. This brings the total issue size to Rs 6,145.56 crore. Under the OFS, Ola Electric founder Bhavish Aggarwal plans to offload nearly 3.8 crore shares.

As outlined in its prospectus, Ola Electric Mobility Ltd (OEML) intends to allocate Rs 1,227.6 crore from the proceeds of the Rs 5,500-crore public issue towards expanding the capacity of its cell manufacturing plant from 5 GWh to 6.4 GWh.

Additionally, the company plans to invest Rs 1,600 crore from the fresh funds in research and product development, Rs 800 crore for debt repayment, and Rs 350 crore for organic growth initiatives. According to its Red Herring Prospectus (RHP), the first two phases of the setup and expansion of the Ola Gigafactory in Krishnagiri district, Tamil Nadu, will be financed through internal accruals and long-term borrowings obtained by its subsidiary, Ola Cell Technologies Pvt Ltd (OCT).

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