OLA Electric IPO: The initial public offering (IPO) of electric two-wheeler manufacturer Ola Electric Mobility Ltd opened for public subscription on Friday, August 2. The IPO will close on August 6. By 10:45 am on the first day of bidding, the Rs 6,145.56-crore IPO had received a 12 per cent subscription, with bids for 52,048,815 shares against the 445,143,490 shares on offer. The IPO opened at 10 am.
According to the latest data, the retail quota received a 0.55 times subscription, while the non-institutional investors category garnered a 0.05 times subscription.
The price band for the Ola Electric IPO is set at Rs 72- Rs 76 per share. Share allotment is expected to be finalised on August 6, with the listing scheduled for both the BSE and the National Stock Exchange (NSE) on August 8.
On Thursday, Ola Electric announced that it had raised Rs 2,763 crore from anchor investors, a day before the IPO opened for public subscription. The anchor round attracted participation from several investors, including Foreign Portfolio Investors (FPIs), domestic mutual funds, and insurance companies, as per a circular on BSE'Os website.
Prominent participants in the anchor round included SBI Mutual Fund, HDFC Mutual Fund, Nippon India Mutual Fund, Sundaram Mutual Fund, Bandhan Mutual Fund, Bharti AXA Life Insurance Company, Kotak Mahindra Life Insurance Company, Government Pension Fund Global, Nomura India Investment Fund, Goldman Sachs (Singapore) Pte Ltd, and Fidelity. Ola Electric allotted 36.35 crore equity shares to 84 funds at Rs 76 per share, amounting to Rs 2,763 crore.
Founder Bhavish Aggarwal plans to offload nearly 3.8 crore shares through the Offer for Sale (OFS).
The IPO proceeds will be used to boost Ola Electric’s cell manufacturing capacity and to fund research and development for future technologies and products.
Regarding future product launches, the company stated, "We plan to introduce affordable mass-market Ola S1 models, including electric two-wheelers (E2Ws) aimed at the personal, business-to-business, and last-mile delivery segments by the first half of fiscal 2025." Additionally, the company aims to begin deliveries of its motorcycles, announced on August 15, 2023, by the first half of fiscal 2026. Ola Electric also plans to expand its product portfolio to include mass-market motorcycles, targeting a broader consumer base across various product types and price points.