Ola Electric IPO: The Rs 6,146-crore IPO of Ola Electric Mobility received a strong response from investors, achieving a subscription rate of 4.26 times the shares on offer on the last day of bidding. According to data from stock exchanges, investors applied for 198.17 crore equity shares against the offer size of 46.51 crore shares. Qualified Institutional Buyers (QIBs) led the charge with a subscription of 5.31 times their allotted quota, while retail investors subscribed 3.86 times their portion. High Networth Individuals (HNIs) bid 2.39 times their allotted shares as of 5:30 pm on August 6.
Employee participation was notably robust, with employees purchasing 11.67 times the reserved shares. The electric vehicle manufacturer allocated Rs 5.5 crore worth of shares to its employees, who will receive these at a discount of Rs 7 per share to the final issue price.
Ola Electric aims to raise Rs 5,500 crore through the fresh issue component and an additional Rs 645.6 crore via the offer-for-sale (OFS). The price band for the public issue has been set at Rs 72-76 per share.
The selling shareholders in the OFS include Bhavish Aggarwal, Indus Trust, Alpha Wave Ventures II LP, Alpine Opportunity Fund VI LP, Internet Fund III Pte, MacRitchie Investments Pte, Matrix Partners India Investments III, LLC, SVF II Ostrich (DE) LLC, Tekne Private Ventures XV, and Ashna Advisors LLP.
The company plans to invest Rs 1,227.64 crore in expanding the capacity of its cell manufacturing plant from 5 GWh to 6.4 GWh at the Ola Futurefactory, where it produces key EV components like battery packs, motors, and vehicle frames. Additionally, Rs 800 crore will be allocated for debt repayment, Rs 1,600 crore for research and product development, and Rs 350 crore for organic growth initiatives.
The basis of allotment for the IPO shares will be finalised by August 7, with equity shares expected to be credited to investors' demat accounts by August 8. Trading of Ola Electric shares on the stock exchanges will commence on August 9.
Currently, the IPO shares of Ola Electric are not attracting any premium in the grey market, which is often seen as an unofficial indicator of a company's market reception.