Ola Electric Mobility is set to make a significant mark in the electric vehicle (EV) sector with its upcoming initial public offering (IPO), scheduled to launch on August 2nd. The company aims to raise Rs 5,500 crore in primary capital, complemented by an additional Rs 645.6 crore through an offer for sale (OFS) from existing investors. The funds will support cell manufacturing, research and development, and debt repayment.
Harish Abichandani, Ola Electric Mobility’s CFO, stated, “We are raising capital for cell manufacturing and research and development. All these get factored into the cash flows generated in the future. As we scale up, the path to profitability is faster.” Abichandani emphasised that the company’s capital expenditure for vehicle manufacturing and cell production is thoroughly funded.
Bhavish Aggarwal, CEO of Ola Electric, underlined the company’s goal to make EVs more accessible. “We are focused on bringing EVs to the mass market and expect them to penetrate deeper into small towns and villages,” he said. Aggarwal also highlighted the importance of Ola Electric’s Indian manufacturing roots, noting, “The company is young, and we wanted to bring it to market early because of its Indian manufacturing story.”
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IPO Details
- Price Band: Rs 72-76 per share
- Subscription Dates: August 2 to August 6
- Retail Investor Reservation: 10%
- Shareholders Offloading: Promoters Bhavish Aggarwal and Indus Trust, among other investors