Ola Electric IPO subscribed 0.35 times
Ola Electric Mobility Ltd.’s IPO saw a muted response on the first day (August 1). Retail investors fully subscribed within three hours. Investors bid for 163.4 million shares, or 0.35 times the 465.1 million shares offered. The bidding closes on August 6.
The IPO was subscribed 0.35 times overall, led by retail investors at 1.57 times. Non-institutional investors subscribed 0.20%, while qualified institutional buyers made no bids. The employee quota was subscribed 4.88 times.
Ola Electric shares are trading at a Rs 12.20 (16.05%) premium in the grey market. Shares are priced between Rs 72-76, with a minimum bid of 195 shares. The Rs 61.46 billion issue includes a Rs 55 billion fresh share sale and an offer for sale of 84.9 million shares worth Rs 6.46 billion. Promoter Bhavish Aggarwal, SoftBank, Temasek, and Matrix Partners India are among the sellers.
The public offer allocates 75% for institutional investors, 15% for non-institutional investors, and 10% for retail investors. Employees get a Rs 7 per share discount.
Ola Electric plans to use Rs 16 billion of proceeds for R&D but cautions that results are not guaranteed. The company, involved in manufacturing EVs and components, has 870 experience centres and 431 service centres as of March 31, 2024.
The company reported a Rs 15.84 billion loss in FY 2024, up from Rs 14.72 billion in FY 2023. The IPO is managed by Kotak Mahindra Capital, Citigroup Global Markets India, BofA Securities India, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, SBI Capital Markets, and BOB Capital Markets.
IPO allotment is expected on August 7, with listing on BSE and NSE on August 9, 2024.