Ola Electric IPO: On Friday, August 2, 2024, Bhavish Aggarwal-led Ola Electric Mobility Limited, which currently holds a nearly thirty-five percent market share in India’s electric two-wheeler sector, is expected to begin accepting subscriptions for its initial public offering (IPO). Through the IPO, Ola Electric, which is supported by Softbank, hopes to collect about Rs 6,145.56 crore. This is anticipated to be the largest initial public offering (IPO) made in India in 2024.
The Ola Electric initial public offering (IPO) includes 723,684,210 equity shares valued at about Rs 5,500 crore, with a lot size of 195 shares and a price range of Rs 72-76 per share. The remaining net profits will be used for general corporate purposes. The net proceeds will be used to support research and product development, grow its gigafactory, pay off debt, and finance organic growth activities. The promoters and investors are selling 84,941,997 shares with a face value of Rs 10 as part of the IPO, for a total of Rs 645.56 crore.
Bhavish Aggarwal to gain Rs 288 Cr from Ola Electric IPO
Bhavish Aggarwal and Indus Trust are the promoters who would offload 37,915,211 and 4,178,996 equity shares, respectively, with a face value of Rs 10. Aggarwal presently owns 1,361,875,240 equity shares in the firm, each worth Rs 10. The Red Herring Prospectus states that this amount represents 36.94 percent of the company’s fully diluted equity share capital that has been issued, subscribed for, and paid up. As per the RHP papers, Aggarwal’s average cost of acquisition per equity share is minimal.
The average cost of acquisition per equity share for Bhavish Aggarwal is as follows, according to the RHP papers:
As of the date of this Red Herring Prospectus, Bhavish Aggarwal, our promoter, owns 1,361,875,240 equity shares with a face value of Rs 10 each, which, on a fully diluted basis, represents 36.94 percent of the company’s issued, subscribed, and paid-up equity share capital. In accordance with the first subscription to the Memorandum of Association on February 3, 2017, ANI Technologies Private Limited (Ola Cabs) was granted 9,999 equity shares having a face value of Rs 10 each at a cost of Rs 10 per equity share. Later, on December 19, 2018, Ola Cabs paid our Promoter, Bhavish Aggarwal, an overall payment of Rs 92,500 by transferring 9,250 equity shares that it owned and had a face value of Rs 10 per.
A bonus issue of 1,955,439,944 equity shares with a face value of Rs 10 each was made by our company on December 23, 2021, to shareholders whose names were on the list of beneficial owners on that date. This list included our promoter, Bhavish Aggarwal, who received 1,377,660,870 equity shares with a face value of Rs 10 each as a result of this bonus issue. With the exception of the bonus shares that were allocated, our promoter has not bought any further equity shares in our company other than those that were purchased on December 19, 2018. Because of this, our Promoter, Bhavish Aggarwal, paid very little to acquire equity shares.”
The list of investors who sold their shares of Ola Electric through an offer for sale is as follows:
- Ventures II, Alpha Wave LP – Maximum number of equity shares: 3,782,883 .
- Alpine Opportunity Fund VI, L.P.: A maximum of 630,336 shares of equity .
- Web Fund III Pte Ltd – Up to 6,360,891 shares of equity .
- Up to 1,354,978 equity shares are held by MacRitchie Investments Pte. Ltd.
- Up to 3,727,534 equity shares are held by Matrix Partners India Investments III, LLC.
- SVF II Ostrich (DE) LLC: Equities shares up to 23,857,268 .
- Tekne Private Ventures XV, Ltd.: Equities shares up to 975,581.
- Ashna Advisors LLP: Maximum 601,828 shares of equity .