Ola Electric IPO anchor book

Ola Electric IPO’s Anchor Book Expected on August 1; Public Issue Likely from August 2-6

Key Details:

• IPO Timeline: Ola Electric is set to launch its anchor book on August 1, with the public subscription period expected between August 2 and August 6. The listing is likely to occur on August 9.
• IPO Structure: The firm plans to raise around $740 million through a combination of a fresh issue and an offer for sale (OFS), aiming for a post-money valuation between $4 billion and $4.25 billion.
• Key Competitors: Ola Electric will compete with TVS Motors, Bajaj Auto, and Ather Energy.
• Regulatory Filing: The company filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on December 22, 2023.
• Investment Banks: Kotak Mahindra Capital, Axis Capital, Goldman Sachs, ICICI Securities, Citi, BofA Securities, SBI Caps, and BoB Caps are the investment banks managing the deal. Cyril Amarchand Mangaldas is the company counsel.
• Advisor Engagement: Ola Electric engaged Kotak Mahindra Capital and Goldman Sachs as advisors for the IPO. ANI Technologies, the parent company of Ola Cabs, is also considering an IPO for the ride-hailing business.
• Share Sale: Existing shareholders, including founder Bhavish Aggarwal and early investors such as AlphaWave, Alpine, DIG Investment, and Matrix, will sell 95.19 million shares through the OFS.

Financial Utilization:

• Proceeds Utilization: Funds raised from the IPO will be used for capital expenditure (capex), repaying debt, and research and development (R&D).

Benefits

1. Market Expansion: The IPO will provide Ola Electric with the capital needed to expand its market presence and compete effectively with other established EV manufacturers.
2. Innovation and Development: Funds from the IPO will support extensive research and development, fostering innovation in electric vehicle technology.
3. Debt Reduction: A portion of the proceeds will be used to repay debt, strengthening the company’s financial position.
4. Increased Visibility: Listing on the stock exchange will enhance Ola Electric’s visibility and credibility in the market.
5. Shareholder Value: The IPO provides an opportunity for existing shareholders to realize value from their investments.
6. Growth Potential: The additional capital will enable Ola Electric to accelerate its growth plans, including the development of new products and technologies.

Conclusion

Ola Electric is on the verge of a significant milestone as it prepares for its initial public offering (IPO), expected to launch for public subscription between August 2 and August 6, with a listing anticipated on August 9. The IPO aims to raise approximately $740 million, positioning Ola Electric at a post-money valuation of $4 billion to $4.25 billion. This move not only underscores the company’s growth ambitions but also its readiness to compete with established players in the electric vehicle (EV) market, such as TVS Motors, Bajaj Auto, and Ather Energy. The funds raised will bolster Ola Electric’s capex, debt repayment, and R&D efforts, driving further innovation and expansion in the EV sector.

FAQs

1. What is the timeline for Ola Electric’s IPO?

1. • The anchor book launch is on August 1, and the public subscription is likely between August 2 and August 6, with the listing expected on August 9.

2. How much does Ola Electric aim to raise through the IPO?

1. • The company aims to raise around $740 million through a combination of a fresh issue and an offer for sale.

3. What is the expected valuation of Ola Electric post-IPO?

1. • The post-money valuation is anticipated to be between $4 billion and $4.25 billion.

4. Who are the key competitors of Ola Electric in the EV market?

1. • Ola Electric’s key competitors include TVS Motors, Bajaj Auto, and Ather Energy.

5. What will the proceeds from the IPO be used for?

1. • The proceeds will be utilized for capital expenditure (capex), repaying debt, and research and development (R&D).

6. Who are the investment banks managing the IPO?

1. • The IPO is being managed by Kotak Mahindra Capital, Axis Capital, Goldman Sachs, ICICI Securities, Citi, BofA Securities, SBI Caps, and BoB Caps.

7. Who are the existing shareholders selling shares in the IPO?

1. • Founder Bhavish Aggarwal and early investors such as AlphaWave, Alpine, DIG Investment, and Matrix are among the existing shareholders selling shares.

Ola Electric IPO anchor book

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