Ola Electric sets price band of Rs 72-76 per share in one of biggest IPO

SoftBank-backed Indian e-scooter maker Ola Electric will offer shares in the price band of Rs 72-76  ($0.86-$0.91) in its stock market offering which will open this week and be one of India's biggest IPOs this year, a newspaper ad showed on Monday.

Ola Electric's roughly $740 million IPO will be the first by an Indian electric vehicle maker. The company is the biggest player in the e-scooter market in a country where adoption of clean vehicles is still low but rising rapidly.

A newspaper ad by the company in the Financial Express showed the Rs 72-76-price band, with a Rs 7 per share discount for certain eligible employees bidding in the IPO.

The IPO will open for subscriptions Aug. 1 to Aug. 6.

It is set to draw investor bids from Fidelity, Nomura and Norges Bank, as well as several Indian mutual funds, Reuters reported earlier on Monday.

Ola's IPO will see the company issue new shares to raise $660 million and also see its existing investors, including founder Bhavish Aggarwal, offload their stake of about $80 million to IPO investors.

The newspaper ad showed that 10 per cent of the IPO will be reserved for retail investors. The proceeds of the IPO will be used for funding capital expenditure and for research and development.