Ola Electric’s IPO: Bhavish Aggarwal’s Company Goes Public
Ola Electric Mobility Limited, a Bengaluru-based electric vehicle company founded by Bhavish Aggarwal, is set to launch its initial public offering (IPO) on Friday. The company has fixed the price range for its shares between Rs 72 and Rs 76 per share.
The IPO will be open for subscription from Friday to Tuesday, August 6, 2024. Investors can bid for a minimum of 195 equity shares and in multiples of 195 shares thereafter, with a minimum investment of Rs 14,820.
The IPO includes a fresh issue of equity shares worth Rs 5,500 crore and an offer for sale of up to 84,941,997 shares. The shares will be listed on both BSE and NSE.
Ola Electric, which started in 2017, delivered its first electric scooter in December 2021. The company has since launched several models, including the Ola S1 Pro, Ola S1, Ola S1 Air, and various versions of the Ola S1 X.
Despite its growth, the company has reported losses in recent years, including Rs 1,584 crore in 2023-24. Ola Electric plans to use Rs 16,000 million from the IPO proceeds for research and development.
The company highlighted potential risks, including supply chain disruptions, reliance on government incentives, and sourcing raw materials from China. InCred Equities has expressed cautious optimism about the IPO, noting potential volatility from policy changes and delays in EV cell plant development.
Bhavish Aggarwal serves as the Founder, Chairman, Managing Director, and Promoter of Ola Electric.
Doubts Revealed
IPO -: IPO stands for Initial Public Offering. It means a company is selling its shares to the public for the first time.
Bhavish Aggarwal -: Bhavish Aggarwal is the co-founder and CEO of Ola Electric, a company that makes electric vehicles.
Bengaluru -: Bengaluru is a big city in India, known for its technology companies and startups.
Electric vehicle -: An electric vehicle is a type of vehicle that runs on electricity instead of petrol or diesel.
Rs 72 to Rs 76 per share -: This is the price range at which people can buy one share of Ola Electric during the IPO.
Fresh issue of shares -: This means the company is creating new shares to sell to the public to raise money.
Offer for sale -: This means existing shareholders are selling their shares to the public.
BSE and NSE -: BSE stands for Bombay Stock Exchange and NSE stands for National Stock Exchange. These are places where people can buy and sell shares of companies.
Research and development -: Research and development, or R&D, is when a company spends money to create new products or improve existing ones.
