Softbank-backed two-wheeler maker Ola Electric Mobility's initial pubilc offer (IPO) will open on Friday, August 2. The IPO is a combination of a fresh issue of equity shares up to Rs 5,500 crore and an offer for sale (OFS) of 8.49 crore equity shares by promoters and investors. It will close on August 6.

Ola Electric Mobility IPO: Should you apply? 

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LKP Securities recommends subscribing to the IPO with a long-term perspective on the back of the narrative of Electric Vehicle (EV) proliferation in the country. 

With a similar view, Anand Rathi recommends subscribing with a long-term view. As it believes on the valuation front, the company is richly priced.

Here are some of the key details about Ola Electric Mobility IPO:

Ola Electric Mobility IPO: Important dates

The subscription window for the IPO will be available from 10 am to 5 pm for three trading days ending on August 6, 2024.

Tentatively, shares of Ola Electric will be listed on the NSE and BSE on Wednesday, August 9.

Ola Electric Mobility  IPO: Price band

The price band of the issue is fixed at Rs 72-76 per share.

Ola Electric Mobility  IPO: Lot size

Investors can bid for a minimum of 197 equity shares and in multiples of it thereafter, the company said.

Ola Electric Mobility IPO: Allotment

Tentatively, the basis of the allotment of shares will be finalised on Wednesday, August 7. Subscribers will be able to check the allotment status on the website of Link Intime India Private Ltd. Here's the direct link. https://www.linkintime.co.in/Initial_Offer/public-issues.html

Ola Electric Mobility IPO: Fund utilisation 

As per the company, of the total IPO proceeds, Rs 1,227.6 crore will be allocated to increase the capacity of its cell manufacturing plant from 5 GWh to 6.4 GWh while Rs 1,600 crore will be invested in research and product development.

Besides, the company will use Rs 800 crore for the repayment of existing debts and Rs 350 crore for organic growth initiatives.

For Ola Electric, the IPO will provide the much-needed impetus to invest in enhancing cell manufacturing capacity and research and development on future technologies and products.

About Ola Electric Mobility 

Founded in 2017, Ola Electric Mobility Limited is an electric vehicle company that primarily manufactures electric vehicles and certain core components for electric vehicles such as battery packs, motors, and vehicle frames at the Ola Futurefactory.

(With inputs from agencies)

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