Ola Electric Mobility announced on Thursday (August 1) that it has successfully raised ₹2,763 crore from anchor investors ahead of its initial public offering (IPO). The funding round included participation from a diverse group of investors, such as Foreign Portfolio Investors (FPIs), domestic mutual funds, and insurance companies, as detailed in a BSE circular.
The company allotted 36.35 crore equity shares to 84 funds at a price of ₹76 per share, totaling the transaction to ₹2,763 crore. The IPO, which features a price band ranging from ₹72 to ₹76 per share, is set to open for public subscription on August 2 and will close on August 6.
Key investors in the anchor round include SBI Mutual Fund, HDFC Mutual Fund, Nippon India Mutual Fund, Sundaram Mutual Fund, Bandhan Mutual Fund, Bharti Axa Life Insurance Company, Kotak Mahindra Life Insurance Company, Government Pension Fund Global, Nomura India Investment Fund, Goldman Sachs (Singapore) Pte Ltd, and Fidelity.
The IPO comprises a fresh issue of equity shares worth up to ₹5,500 crore and an offer for sale (OFS) of 8.49 crore equity shares valued at ₹645.56 crore by promoters and existing investors. The total issue size is ₹6,145.56 crore. Notably, Ola Electric founder Bhavish Aggarwal will be selling approximately 3.8 crore shares under the OFS.
According to its prospectus, Ola Electric plans to allocate ₹1,227.6 crore of the ₹5,500-crore fresh issue proceeds for expanding its cell manufacturing plant capacity from 5 GWh to 6.4 GWh. Additionally, ₹1,600 crore will be invested in research and product development, ₹800 crore will be used to repay existing debts, and ₹350 crore will be directed towards organic growth initiatives.
The company also revealed that the expansion of the Ola Gigafactory in Krishnagiri, Tamil Nadu, will be funded through internal accruals and long-term borrowings from its subsidiary, Ola Cell Technologies Pvt Ltd (OCT).
I’m a finance writer with three years of experience in investment analysis. At Investorwelcome , I translate complex financial concepts into clear, actionable insights to help investors navigate the market with confidence. Combining my solid academic background with practical industry knowledge, I’m dedicated to providing readers with accurate and timely information. My goal is to empower both new and seasoned investors by simplifying intricate data and offering strategic advice. When I’m not writing, I stay engaged with market trends and investment innovations to ensure my content remains relevant and valuable.
