The Korean car major is, however, not exiting the Bangalore-based pureplay EV maker.
By B N KUMAR
MUMBAI, Aug 2 (The CONNECT) – Here is a piece of information that we may have missed – Ola Electric has been riding on Hyundai Motor Company’s support. And now, its payback time for Ola which has opened its IPO today.
The value Hyundai stake – which owns 114,074,415 fully paid-up Compulsorily Convertible Preference Shares of INR 10 each, that works out to over 3% stake in Ola – will go up to Rs 874 crore ($100 million) post the electric vehicle company’s Rs 6,145 crore IPO.
Hyundai is, however, not exiting Ola which has set a price range of ₹72 to ₹76 per equity share, each with a face value of ₹10 for the IPO that opened today and will close on Tuesday, August 6, 2024.
The Bhavish Aggarwal-led Ola Electric is offering a mix of new shares worth up to $657 million (₹5,500 crore) and an offer-for-sale (OFS) of 8.49 crore shares by promoters and investors.
At the upper price band of Rs 76, the OFS will raise about $77 million (Rs 645.56 crore) for the sellers.
Ola Electric makes EVs and key EV components like battery packs, motors, and vehicle frames at its Ola Futurefactory. The company aims to capture the growing electric mobility market in India and plans to export EVs to selected international markets. It started delivering its first EV, the Ola S1 Pro, in December 2021, followed by the Ola S1 in September 2022, the Ola S1 Air in August 2023, and the Ola S1 X+ in December 2023.
Within nine months of delivering its first EV scooter in December 2021, Ola became the best-selling electric two-wheeler brand in India, based on monthly registrations on the VAHAN Portal of the Ministry of Road Transport and Highways, according to a report by Redseer.
Ola’s business model includes its in-house design and development across EV technologies and components, adaptable manufacturing and supply chain platform, and direct-to-consumer (D2C) omnichannel distribution. The current Generation 2 platform supports the Ola S1 scooter models: Ola S1 Pro, Ola S1 Air, Ola S1 X+, Ola S1 X (2 kWh), and Ola S1 X (3 kWh). Ola plans to use this platform for its new motorcycle range, which includes four models: Diamondhead, Adventure, Roadster, and Cruiser.
Ola operates its Futurefactory, Gigafactory, and Battery Innovation Centre in Bengaluru and is building an EV hub in the Krishnagiri and Dharmapuri districts of Tamil Nadu.
