Ola Electric IPO: SoftBank Group-backed e-scooter maker company filed DRHP (Draft Red Herring Prospectus) with market regulator Securities and Exchange Board of India (SEBI) on Friday last week. The proposed public issue includes a fresh equity share release of up to ₹5,500 crore and an offer for sale (OFS) of 95,191,195 equity shares at a face value of ₹10 per equity share.
In this over crowded primary market, imvestors are eagerly waiting for announcement of Ola Electric IPO price band, valuations and other details. However, an information in DRHP related to the dividend payment history of the company might attract those investors who buy stocks with eyes on company’s capital reserves. For such investors, income from other than stock rally matters as they earn from various announcements like dividends, bonus shares, stock split, buyback of shares. etc.
Also Read: Ola IPO: Bumpy road or a smooth ride ahead for investors?
The public company has made it clear in its DRHP that it hasn’t paid dividend to its shareholders in last three financial years and the first three months of the current financial year.
Ola Electric dividend history
Informing about dividend history, Ola Electric has mentioned in its DRHP, “Our Company has not declared and paid any dividend in the three Fiscals and the three-months period ended June 30, 2023 preceding the date of this Draft Red Herring Prospectus and the period from July 1, 2023 until the date of this Draft Red Herring Prospectus.”
“There is no guarantee that any dividends will be declared or paid in the future,” SoftBank Group-backed e-scooter maker company adds in the DRHP filed with SEBI.
Ola Electric dividend policy
However, the public company has said in the DRHP that dividend payment by the company in future will depend upon various conditions like earnings, financial condition, working capital requirements, capital expenditures, etc.
“Our ability to pay dividends in the future will depend on our earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of our financing arrangements,” Ola Electric added.
Other details of Ola Electric IPO
Ola Electric founder Bhavish Aggarwal is set to sell around 47.4 million shares in the SoftBank Group-backed e-scooter maker. The public company is targeting a valuation in the range of $7 to $8 billion by early 2024.
On 17th November 2023, Ola Electric underwent a pivotal transformation into a public company, a crucial step in its preparations for an IPO. This involved corporate restructuring and necessitated a change in the company’s name from Ola Electric Mobility Private Limited to Ola Electric Mobility Limited. The conversion from a private limited company to a public company is a mandatory procedure for firms aspiring to be listed on the stock exchange.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.
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Published: 23 Dec 2023, 03:37 PM IST