Ola Electric IPO: Check lot size, IPO dates, price band, issue size and other details here

Ola Electric IPO: Bhavish Aggarwal-led Ola Electric Mobility’s Rs 6,166 crore Initial Public Offering (IPO) is set to open on August 2 amid high anticipation among investors. The Bengaluru-based EV manufacturing company will issue a combination of 72.37 crore fresh shares aggregating to Rs 5,500.00 crores and an offer for sale of 8.49 crore shares aggregating to Rs 645.56 crores.

The company’s IPO will close on August 6 with the allotment expected to be finalised by Wednesday next week on August 7. The IPO will list on the BSE and NSE with a tentative listing date of Friday, August 9.

The price band is established at Rs 72 to Rs 76 per share. The minimum lot size for an application is 195 shares, requiring a minimum investment of Rs 14,820 for retail investors. For small non-institutional investors (sNII), the minimum investment is 14 lots, totalling 2,730 shares, and amounting to Rs 207,480. For big non-institutional investors (bNII), the minimum investment is 68 lots, totalling 13,260 shares, amounting to Rs 1,007,760.

Also read: Ola Electric’s Falcon Flight

First of its kind opportunity for investors

Sharing insights into the Ola Electric Mobility IPO, analysts from Sharekhan by BNP Paribas highlight the IPO as a first-of-its-kind opportunity in India’s emerging EV manufacturing sector. “OLA enjoys a market leadership position in the electrical two-wheeler segment in the domestic market and offers a first-of-its-kind opportunity to investors to play on a pure EV growth story,” Sharekhan’s IPO Flash stated.

The analysts also shared that despite reporting EBITDA losses, the company’s gross margin and topline have been exhibiting an upward trajectory that aligns with the rise in volume from FY22. “It is believed that its operating performance would improve on a further rise in volumes, accrual of PLI benefits, cost optimisation and consumption of in-house Li-ion cells. At the upper price band, the company is valued at 6.7x its FY24 sales,” the analysts said.

The note also cited Ola Electric’s limited operating history, negative cash flows from operations, quality issues, and potential disruptions as the key risks while applying for the company’s IPO. However, Ola Electric’s focus on research and technology, developing supply chain capabilities, and comprehensive efforts to build EV hubs and improve cell technology could be key strengths that will lure investors in.

Ola Electric Mobility's journey

Ola Electric Mobility, an Indian electric two-wheeler manufacturer based in Bengaluru, Karnataka, operates a manufacturing facility in Krishnagiri, Tamil Nadu. The company began delivering its first electric vehicle, the Ola S1 Pro, in December 2021, followed by the Ola S1 in September 2022. 

In August 2023, the Ola S1 Air was introduced, and December 2023 saw the launch of the Ola S1 X+. In May 2024, Ola released three new models: the Ola S1 X (2 kWh), Ola S1 X (3 kWh), and Ola S1 X (4 kWh).

On August 15, 2023, Ola announced a new line-up of motorcycles, featuring four models: Diamondhead, Adventure, Roadster, and Cruiser. The company plans to deliver these motorcycles in the first half of the fiscal year 2026.