Bengaluru-based electric vehicle maker Ola Electric announced the price band for its upcoming ₹6,000-crore IPO on Monday.

What Happened: The company has set a price band of ₹72 to ₹76 per share for its IPO which opens for subscription on August 2 and closes on August 6. The shares are slated to be listed on the BSE and NSE exchanges on August 9.

The IPO, to be launched on August 2, as per reports, comprises a fresh issue of shares worth ₹5,500 crore and an offer for sale (OFS) of 8.49 crore shares.

At the upper price band, the total value of the OFS works out to ₹645.56 crore. The minimum lot size for an application is 195 shares which means based on the higher price range, the minimum amount of investment for retail investors is ₹14,820. 

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GMP And Other Details: Ola Electric’s grey market premium, which is the upside to the listing price of its shares in the unlisted market, is currently reported at ₹15.

A minimum of 75% of the IPO has been allocated for qualified institutional buyers (QIBs), up to 15% for non-institutional investors and up to 10% for retail investors.

The company plans to use the net proceeds from the IPO to fund several key areas including the expansion of its subsidiary OCT's cell manufacturing plant from 5 gigawatt hours to 6.4 gigawatt hours, repaying or prepaying unit Ola Electric Technologies’ debt, investing in research and product development, supporting organic growth initiatives and covering general corporate expenses.

Kotak Mahindra Capital Company Limited, BofA Securities India Limited and Axis Capital Limited are among the book-running lead managers of the IPO.

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