Ola Electric is getting ready for its IPO, which is the biggest since state-owned Life Insurance Corp (LIC) of India’s ₹21,000 crore IPO in May 2022.
What Happened: The electric vehicle maker is set to raise ₹6,145.56 crore through its IPO. The offering comprises a fresh issue of 72.37 crore shares worth ₹5,500 crore and an offer for sale of 8.49 crore shares, totalling ₹645.56 crore, with a price range of ₹72 to ₹76 per share.
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Founder Bhavish Aggarwal will offload 3.79 crore shares in the IPO, its listing prospectus showed. About nine other investors are also selling their stakes. Alpine Opportunity and Tekne Private are selling small quantities at a loss.
Negative Returns: Alpine is selling more than 6.3 lakh shares, whereas Tekne is offloading around 9.7 lakh shares. They will sell their shares at the price band of ₹72 to ₹76, whereas their acquisition cost per share is ₹111.51 and ₹113.12, respectively. This means that even at the higher price band, the companies will book a loss of 32% and 33% respectively.
The IPO opened on August 2 and will close on August 6. The company has decided to suspend its electric car project and instead focus on its e-scooter business, Reuters reported in July, ahead of the IPO filing.
Aggarwal had initially planned to launch an electric sports car by 2024, but the project has now been put on hold.
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