The highly anticipated OLA Electric IPO is now open for investors. Bidding will close on August 6. On its first day, the IPO was only 0.38 times subscribed, indicating lower-than-expected demand.
OLA Electric aims to raise a total of Rs 6,145.56 crore, with Rs 5,500 crore from new shares and Rs 645.56 crore from existing shares being sold.
Grey Market Premium
In the grey market, which operates unofficially before the official listing, the OLA Electric IPO is trading at a premium of about 13% above the issue price. This market is used by investors to gauge potential listing gains.
IPO Details
Share allotment will be finalized by August 7, with listing expected on August 9. The price range is set between Rs 72 and Rs 76 per share.
Retail investors must bid for at least one lot of 195 shares, costing Rs 14,820.
Different bidding lots are available for Non-Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs).
Employee Reservation
OLA Electric has reserved 797,101 shares for its employees, which will be available at a discount of Rs 7 per share.
About OLA Electric
OLA Electric focuses on manufacturing electric vehicles and their core components, such as battery packs and motors, at the Ola Futurefactory.
The company has introduced seven new products and announced four more. It is supported by major investors like SoftBank, Tiger Global, and Temasek.
OLA Electric will be the first company exclusively producing electric two-wheelers (E2Ws) to list on domestic stock exchanges.
Expert’s Take
Choice Broking notes that OLA Electric has made significant capital investments and has ambitious growth plans. While the company’s dominant position in the E2W market
and its backward integration into cell manufacturing are positive factors, reliance on government subsidies
and ongoing losses are concerns. They recommend subscribing to the IPO with caution.
BRLMs and Registrar
The book-running lead managers for the IPO are Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, SBI Capital Markets, Citigroup Global Markets India, Goldman
Sachs (India) Securities, ICICI Securities, and BoB Capital Markets. Link Intime India is the registrar for the issue.
