Ola Electric aims to raise ₹6,145.56 crore in its upcoming IPO, which comprises a fresh issue of 72.37 crore shares amounting to ₹5,500 crores and an offer for sale of 8.49 crore shares, aggregating to ₹645.56 crores.
The price band for the IPO is set between ₹72 to ₹76 per share, with the minimum lot size being 195 shares. The IPO will opened on August 2 and close on August 6.
Ola Electric IPO Subscription Status
The IPO subscription for Ola Electric opened on Friday and has seen a steady response from investors. As per BSE data, the retail individual investors (RIIs) category was subscribed 1.03 times, while the non-institutional investors (NIIs) category saw a subscription of 0.09 times.
The employee category, which reserved up to 7.97 lakh shares, saw a subscription of 3.51 times. However, the qualified institutional buyers (QIBs) category has yet to see strong significant subscription numbers.
Ola Electric IPO GMP
The Ola Electric’s IPO grey market premium (GMP), which measures current gains on unlisted shares in the grey market, currently stands at ₹12.20. Adding this to the upper price band of the IPO, the estimated listing price works out to be ₹88.2, indicating a potential gain of 16.05% per share.
However, it’s crucial to note that GMPs are merely indicative and should not be the sole factor determining the company’s performance upon listing.
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Ola Electric IPO Details
According to its listing prospectus, Ola Electric plans to utilise ₹1,227.6 crore from the proceeds to expand the capacity of its cell manufacturing plant from 5 gigawatt-hours to 6.4 gigawatt-hours. Additionally, the company aims to allocate ₹1,600 crore for research and product development, ₹800 crore to repay debts and ₹350 crore for organic growth initiatives.
Prior to the IPO, the company raised ₹2,763 crore from anchor investors, including SBI Mutual Fund, HDFC MF, Nippon India MF, Sundaram MF, Bandhan MF, Bharti Axa Life Insurance Company, Kotak Mahindra Life Insurance Company, Government Pension Fund Global, Nomura India Investment Fund, Goldman Sachs (Singapore) and Fidelity.
About Ola Electric
Established in 2017, Ola Electric Mobility is the biggest player in the electric vehicle industry, manufacturing electric vehicles and key components like battery packs, motors, and vehicle frames.
Since August 2021, the company has launched seven new products and announced four more, including the Ola S1 Pro, Ola S1, Ola S1 Air, Ola S1 X and Ola S1 X+.
As of October 31, 2023, Ola Electric operates an omnichannel distribution network across India, comprising 870 experience centres and 431 service centres.
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