Yesterday, Ola Electric Mobility raised Rs 2,763 crores from 80 anchor investors.
MUMBAI: The Rs 6,145.56 crore Initial Public Offering (IPO) of Ola Electric Mobility Limited was subscribed 35% today, the first day of bidding.
The issue received bids of 16,34,52,510 shares against the offered 46,51,59,451 equity shares, at a price band of ₹72-76, according to the data available on the stock exchanges.
Ola Employees filled up their quota nearly five times. The retail investors portion was subscribed within three hours flat. Qualified Institutional Buyers and non-institutional investors appeared to be waiting to chip in as the issue is open till August 6, 2024.
Yesterday, Ola Electric Mobility raised Rs 2,763 crores from 80 anchor investors. Foreign and Domestic Institutions who participated in the anchor included were SBI MF, HDFC MF, Nippon MF, UTI MF, Mirae Asset MF, Norges, Nomura, Fidelity, Franklin Templeton, Pictet, Sundaram MF, HDFC Life Insurance Company, Matthews MF, Kotak Mahindra Life Insurance Company Ltd, Jupiter MF, Bandhan MF, BNP Paribas MF, Bharti AXA Life Insurance Company Ltd, JM Financial MF, Goldman Sachs, Societe Generale, Morgan Stanley and Bengal Finance and Investment Pvt Ltd.,
Leading brokerage firms like Anand Rathi, Deven Choksey Research, Ajcon Global, and BP Equities, have given a “Subscribe” rating to the issue highlighting the company’s strong revenue growth, significant market share in the E2W segment, and robust investment in R&D and technology. The company’s strategic initiatives include the development of the Ola Gigafactory for cell manufacturing, which enhances its supply chain control and cost efficiency.
Ola Electric’s focus on launching next-generation EVs and expanding its product portfolio positions it well to benefit from the growing EV market, favourable regulatory environment, and international market opportunities. Despite being loss-making, its market cap-to-sales ratio is considered high, yet justified by its leadership position and growth potential.
Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, BofA Securities India Limited, Goldman Sachs (India) Securities Private Limited, Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited, and BOB Capital Markets Limited are the book running lead managers and Link Intime India Private Limited is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
Company Information
Ola Electric manufactures EVs and certain core EV components like battery packs, motors and vehicle frames at the Ola Futurefactory. Its business focuses on capturing the opportunity arising out of electrification of mobility in India and also to export its EVs in select international markets in the future. It commenced the delivery of its first EV model, the Ola S1 Pro, in December 2021, followed by delivery of Ola S1 in September 2022, the Ola S1 Air in August 2023 and the Ola S1 X+ in December 2023.
