Ola Electric IPO Price Band Set At Rs 72-76 A Piece

Bengaluru-based Ola Electric Mobility Ltd. has priced its initial public offer at Rs 72-76 per share, valuing the company at Rs 33,522 crore, a steep discount to the fund raise valuation in December 2023.

The electric scooter maker will open its IPO on Aug. 2 and close on Aug. 6. Anchor book for the offer will open on Aug. 1.

In December 2023, Ola Electric raised Rs 1,163.20 crore in Series E funding at a valuation of Rs 47,932 crore, or $5.7 billion, that valued the company share at close to Rs 130 apiece. The IPO pricing values the EV maker at $4 billion, nearly 30% discount to the last round of funding.

Ola Electric will be raising Rs 5,500 crore in primary issue and Rs 645.6 crore via offer for sale from promoters entities and investors.

The proceeds will be used for,

• Capital expenditure: Rs 1,227.64 crore

• Repayment of borrowing: Rs 800 crore

• Investment into R&D: Rs 1,600 crore

• Expenditure for organic growth: Rs 350 crore

The issue comprises of 18.33% of post issue paid up capital and the promoter stake post issue will fall to Rs 36.8% from 45.14%.

At Rs 76 per share, the company is valued at around 6.8 times the enterprise value to sales in the fiscal ended March, and nearly 5.3 times EV to sales in the current fiscal.