Ola Electric IPO: Fueling EV expansion with focus on cell manufacturing and R&D

Ola Electric Mobility is gearing up for a major expansion push in the electric vehicle (EV) market, announcing plans for an initial public offering (IPO) to raise funds for cell manufacturing, research and development, and debt repayment. The IPO, set to open on August 2nd, aims to raise Rs 5,500 crore in primary capital and an additional Rs 645.6 crore through an offer for sale (OFS) from existing investors.

"We are raising capital for cell manufacturing and research and development," said Harish Abichandani, Chief Financial Officer of Ola Electric Mobility. "All these get factored in terms of 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 plans, both for vehicle manufacturing and cell production, are well-funded.

Bhavish Aggarwal, CEO of Ola Electric, highlighted the company's commitment to making EVs accessible to a wider market. "We are focused on bringing EVs to the mass market and we do expect mass market products to penetrate deeper into the small towns and villages," he stated.

Aggarwal also emphasised Ola Electric's strong Indian manufacturing roots, stating that the company's young age and commitment to local production were key factors in the decision to go public early. "The company is young, and we wanted to bring this company to market early because of its Indian manufacturing story," he added.

IPO Details

Price Band: Rs 72-76 per share

Subscription Dates: August 2 to August 6

Retail Investor Reservation: 10%

Promoters Bhavish Aggarwal and Indus Trust, along with several other investors, will be offloading shares through the OFS route.