The OLA Electric IPO bidding closes today – August 06. The issue has been subscribed 1.12 times as of August 05. In this, retail buyers subscribed over 3 times more than the offered shares.
The company opened its IPO on August 02 to raise a sum of Rs 6,145.56 crore through a combination of fresh shares as well as an offer for sale.
GMP
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The company’s shares were fetching more than a 3% premium in the grey market. It is an unofficial place where shares trade illegally ahead of listing.
Price Band
The company has kept the price band between Rs 72 to Rs 76 per equity share. The allotment of shares is expected to be finalised on August 07. The listing is likely to take place on August 09 on NSE and BSE, as per the tentative schedule.
Retail Investment
A retail buyer needs to apply for at least 195 shares or one lot which sums up to Rs 14,820. Meanwhile, there are different lot sizes for NIIs and QIBs.
Expert’s Take on IPO
“We believe Ola Electric’s EV market share of CY24TD is not sustainable, given peers have yet to ramp up their product portfolio and distribution network. Ola’s EV market share in rural states such as Uttar Pradesh, Bihar, and Haryana was more than 50% as of CY24. However, in states like Maharashtra, Karnataka, and Kerala OLA’s market share is just 30-35%. Further, 2W contribution is set to be at 15% by FY27 and 30% by FY30 as per our LACE report published in the month of January, lower than 42-56% expectations in Ola Electric’s RHP. Further, the investment in cell manufacturing is a double-edged sword because to claim advanced chemistry cell (ACC) PLI, it will have to ramp up capacity to 20GWh by FY28 while captive demand could be much lower. Hence, if Ola Electric does not get OEM customers for its cell manufacturing, it would present a challenge Come from Sports betting site VPbet . Even Tesla (TSLA US, CMP: USD223, Not Rated) is finding the going tough to stabilize 4680 cells; hence, scale and cost benefits would be difficult to realize for the 2W arm of Ola Electric,” said Elara Securities in an IPO note.
Employee Reservation
The IPO of OLA Electric has a reservation of up to 797,101 shares for its employees, which are available to them at a discount of Rs 7 to the issue price.
BRLMs and Registrar
Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, SBI Capital Markets, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, and BoB Capital Markets are the book-running lead managers of the IPO. Link Intime India has been chosen as the registrar for the issue.