OLA Electric IPO Details: Bhavish Aggarwal May Gain Rs. 288 Cr

Overview of Ola Electric IPO

Ola Electric Mobility Limited, led by Bhavish Aggarwal, is set to open its initial public offering (IPO) for subscription on Friday, August 2, 2024. The company, which holds approximately 35% of India's electric two-wheeler market, aims to raise around Rs 6,145.56 crore from the IPO. This would be India's largest IPO of 2024 to date.

IPO Details

• Price Band: Rs 72-76 per share
• Lot Size: 195 shares
• Total Shares: 723,684,210 equity shares
• Estimated Value: Approximately Rs 5,500 crore

Utilization of Funds

The net proceeds from the IPO will be used for:

• Repaying debt
• Expanding the gigafactory
• Funding organic growth initiatives
• Supporting research and product development
• General corporate purposes

Offer for Sale

The IPO includes an offer for sale where promoters and investors will offload 84,941,997 shares with a face value of Rs 10, totaling Rs 645.56 crore.

Bhavish Aggarwal's Gain from IPO

Bhavish Aggarwal and Indus Trust are set to sell 37,915,211 and 4,178,996 equity shares, respectively. Aggarwal currently holds 1,361,875,240 equity shares with a face value of Rs 10 each, representing 36.94% of the company's equity on a fully diluted basis. The cost of acquisition for Aggarwal is negligible.

Potential Earnings

If the shares are issued at the upper end of the price band (Rs 76), Aggarwal stands to gain approximately Rs 288.15 crore from selling 37,915,211 shares.

Details from Red Herring Prospectus (RHP)

According to the RHP:

• Bhavish Aggarwal holds 1,361,875,240 equity shares with a face value of Rs 10 each, representing 36.94% of the company’s equity.
• ANI Technologies Private Limited (Ola Cabs) was initially allotted 9,999 equity shares at Rs 10 each in February 2017.
• On December 19, 2018, Ola Cabs transferred 9,250 shares to Bhavish Aggarwal for Rs 92,500.
• In December 2021, Ola Electric issued 1,955,439,944 equity shares as a bonus to shareholders, including 1,377,660,870 shares to Bhavish Aggarwal.

Investors Offloading Stakes in Ola Electric

The following investors are selling their stakes through the offer for sale:

• Alpha Wave Ventures II, LP: 3,782,883 equity shares
• Alpine Opportunity Fund VI, L.P.: 630,336 equity shares
• Internet Fund III Pte Ltd: 6,360,891 equity shares
• MacRitchie Investments Pte. Ltd: 1,354,978 equity shares
• Matrix Partners India Investments III, LLC: 3,727,534 equity shares
• SVF II Ostrich (DE) LLC: 23,857,268 equity shares
• Tekne Private Ventures XV, Ltd: 975,581 equity shares
• Ashna Advisors LLP: 601,828 equity shares