Ola Electric IPO attracts bids worth over ₹16,500 crore from institutional investors: Report

Ola Electric is set to launch its IPO on August 2, with over $2 billion worth of bids already secured for the $330 million quota reserved for major institutions, Reuters reported. State Bank of India and HDFC Mutual Funds received allocations of $30-36 million each, while Nomura and Norges Bank were allocated $24 million each.

Ola Electric plans to use a significant portion of the IPO proceeds to expand its cell manufacturing plant and enhance its research and development efforts. The IPO, which concludes on August 6, features a price band of Rs 72-76 per share, with bidding for anchor investors opening on August 1.

The IPO will consist of a fresh equity issue worth up to Rs 5,500 crore and an offer for sale (OFS) of 8.49 crore equity shares by promoters and investors, according to the prospectus. For Ola Electric, the IPO will provide a crucial boost for investing in cell manufacturing capacity and R&D for future technologies and products.

Promoters Bhavish Aggarwal and Indus Trust will sell 3.79 crore and 41.79 lakh equity shares, respectively, in the OFS. Among investors, SVF II Ostrich (DE) LLC, which holds a 21.98 percent stake in the company, will offload 2.38 crore shares. Other selling shareholders include Alpha Wave Ventures II LP, Alpine Opportunity Fund VI LP, Internet Fund III Pte, MacRitchie Investments Pte, Matrix Partners India Investments III LLC, Tekne Private Ventures XV, and Ashna Advisors LLP.