Electrical two-wheeler firm Ola Electrical Mobility will float its preliminary public providing (IPO) on August 2, and a major a part of the proceeds might be used for capability enlargement of its cell manufacturing plant and revving up R&D.
The preliminary share sale will conclude on August 6, and the bidding for anchor buyers will open for a day on August 1, in accordance with the crimson herring prospectus (RHP).
The corporate’s proposed IPO is a mix of a contemporary concern of fairness shares as much as Rs 5,500 crore and a proposal on the market (OFS) of 8.49 crore fairness shares by promoters and buyers, the prospectus confirmed.
Beneath the OFS, Ola Electrical founder Bhavish Aggarwal will offload virtually 3.8 crore shares.
The worth band of the corporate’s maiden public concern might be introduced on Monday.
For Ola Electrical, the IPO will present the much-needed impetus to put money into enhancing cell manufacturing capability and analysis and growth on future applied sciences and merchandise.
In keeping with its prospectus, Ola Electrical Mobility Ltd (OEML) plans to utilise Rs 1,227.6 crore out of the proceeds of its Rs 5,500 crore public concern on capability enlargement of its cell manufacturing plant to six.4 GWh from 5 GWh.
The corporate can be wanting to make use of Rs 1,600 crore from the contemporary fund on analysis and product growth, one other Rs 800 crore might be deployed to repay money owed and Rs 350 crore for natural development initiatives.
In its RHP, OEML stated that Part 1 (a) and Part 1 (b) of the set-up and enlargement of the Ola Gigafactory at Krishnagiri district in Tamil Nadu might be funded from inner accruals and long-term borrowings availed by its arm Ola Cell Applied sciences Pvt Ltd (OCT).
Part 1 (a) is anticipated to be accomplished by March 2024 and the gigafactory may have a capability of 1.4 GWh. Within the Part 1 (b), the capability might be elevated to five GWh by October 2024. These might be funded from inner accruals and long-term borrowings availed by OCT, it added.
Part 2 of the enlargement envisions scaling up the capability to six.4 GWh by April 2025 and taking it as much as 20 GWh by the second quarter of 2026.
Within the particulars of the targets of the IPO, the corporate stated a portion of the proceeds might be used for capital expenditure to be incurred by OCT for the enlargement of the capability of the cell manufacturing plant from 5 GWh to six.4 GWh.
OEML, which had on August 15, 2023, introduced a line-up of electrical bikes — Cruiser, Journey, Roadster and Diamondhead — and expects to start supply of the bikes within the first half of fiscal 2026.
On future product launch plans, the corporate stated, “We plan to additional launch inexpensive mass market Ola S1 fashions, together with E2Ws (electrical two-wheelers) focused on the private, business-to-business and last-mile supply section by the primary half of fiscal 2025”.
“We additionally plan to start supply of our bikes, which we introduced on August 15, 2023, by the primary half of fiscal 2026. We plan to additional broaden our product portfolio to additionally cowl mass market bikes to seize a broader base of customers throughout completely different product varieties and value factors in the long term.” Final month, Ola Electrical bought market regulator Sebi’s nod to launch its preliminary share sale.
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