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The initial public offering (IPO) of Ola Electric Mobility, led by Bhavish Aggarwal, has captured a lot of attention. The ₹6,145-crore IPO opened on Friday, August 2, 2024, and was fully subscribed by Monday, August 5, 2024.
The Ola Electric IPO has been one of the most talked-about public offerings recently. Launched on August 2, 2024, this IPO has seen varied interest from investors. As of August 5, 2024, at 12:29 PM, this was subscribed 0.71 times. Retail investors have shown significant enthusiasm, subscribing 2.66 times, while non-institutional investors have subscribed 0.76 times. The qualified institutional buyers’ (QIB) portion, however, has seen less interest, with only 0.04 times subscription.
Strong Retail Investor Participation
Retail investors have shown a lot of interest in Ola Electric’s IPO. They subscribed to the retail portion 2.87 times, bidding for 21.47 crore shares against the 8.07 crore shares available. This strong participation shows that retail investors believe in Ola Electric’s future.
Subscriptions by Investor Category
Non-institutional investors (NII) also showed interest, subscribing 1.11 times, bidding for 9.25 crore shares against 12.11 crore offered. Qualified institutional buyers (QIB), however, were more cautious, subscribing only 0.40 times, with bids for 6.24 lakh shares against 24.24 crore offered.
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IPO Details and Financials
The Ola Electric IPO price band is set at ₹72-76 per share. Investors can bid for a minimum of 195 shares, which requires an investment of ₹14,820. The IPO will close on August 6, 2024, with the allotment process set for August 7, and the shares expected to list on BSE and NSE on August 9, 2024.
The IPO includes a fresh issue of ₹5,500 crore and an offer for sale of 8.49 crore shares worth ₹645.56 crore. Prominent shareholders like Bhavish Aggarwal, SoftBank, Temasek, and Matrix Partners India are selling their shares.
Grey Market Premium and Market Sentiment
The grey market premium (GMP) for Ola Electric shares is currently ₹3, suggesting a 4% listing gain. This is a significant drop from the ₹16 GMP when the IPO was first announced. The GMP reflects the market’s sentiment about the IPO, although it can fluctuate based on investor expectations.
Use of Proceeds and Company Plans
Ola Electric plans to use ₹1,600 crore from the IPO proceeds for research and development. This investment aims to improve their technology and products. However, the company warns that this investment may not always produce the expected results.
Company Overview and Achievements
Ola Electric is a major player in India’s electric vehicle (EV) market, holding a 35% share in the electric two-wheeler segment. The company has strong technology and manufacturing capabilities, producing both EVs and their core components. By March 2024, Ola Electric had delivered seven products and announced four new ones.
Distribution and Service Network
Ola Electric has built a solid distribution and service network. It operates 870 experience centers and 431 service centers across India. This approach ensures customers can easily access products and services.
Financial Performance
The company has been incurring losses, with a loss of ₹1,584 crore in FY24, up from ₹1,472 crore in FY23. Despite these losses, Ola Electric’s revenue is growing, showing positive trends in its business operations.
Key Dates and Allotment Details
The IPO subscription window closes on Tuesday, August 6, 2024. The allotment of shares will be finalized on August 7, 2024. Ola Electric shares are expected to list on BSE and NSE on August 9, 2024.
Kotak Mahindra Capital, Citigroup Global Markets India, and several other prominent financial institutions are managing the IPO. The final allotment of shares is expected to be completed by August 7, with the listing scheduled for August 9, 2024.
In summary, the Ola Electric IPO presents a significant opportunity for investors, but it is essential to consider both the potential risks and rewards before investing.
Ola Electric’s IPO has received mixed responses, with strong retail participation but cautious institutional interest. The company’s plans for research, development, and expansion make it a noteworthy player in the EV market. Investors should consider the risks and rewards before making their investment decisions.