New Delhi, July 29 (IANS): Homegrown EV firm Ola Electric is set to offer shares in the price band of Rs 72-76 in its initial public offering (IPO) worth Rs 5,500 crore that will open for subscription on August 2 and close on August 6.

Around 10 per cent of the IPO will be reserved for retail investors.

The IPO will have an offer for sale (OFS) component of up to 84.94 million which translates to Rs 645.96 crore (at the upper price band).

With this, the total issue size will be at Rs 6,145.96 crore, taking Ola Electric’s market cap to nearly Rs 33,500 crore.

Ola Electric's promoters Bhavish Aggarwal and Indus Trust will sell 3.79 crore and 41.79 lakh shares, respectively.

Other investors in the EV firm, like SVF II Ostrich (DE) LLC, Alpha Wave Ventures II LP, Alpine Opportunity Fund VI LP, Internet Fund III Pte, Matrix Partners India Investments III LLC and Ashna Advisors LLP, will also offload their shares via the OFS route.

Ola Electric gears up to spend around Rs 1,227 crore from its IPO raise for the capacity expansion of its cell manufacturing plant.

The EV firm will also spend the IPO money on research, product development and business expansion.

In FY24, Ola Electric’s net loss jumped 7.6 per cent to Rs 1,584.4 crore, from Rs 1,472.1 crore in the previous fiscal.

The company reported a 90 per cent rise in its operating revenue at Rs 5,009.8 crore, from Rs 2,630.9 crore in FY23, as per its red herring prospectus (RHP).