OLA Electric IPO: Key Details and Market Reception

The highly anticipated OLA Electric IPO is now live for investors, with the company aiming to raise Rs 6,145.56 crore. The offering includes Rs 5,500 crore from fresh shares and Rs 645.56 crore through an offer for sale. Bidding for the IPO will close on August 06.

Grey Market Premium (GMP)

In the grey market, OLA Electric shares are fetching a premium of around 13% over the issue price. Although the grey market operates unofficially, it is closely watched by investors for potential listing gains.

Subscription Details

The IPO saw a subdued initial response, with a subscription rate of 0.38 times on the first day. Prior to the public offering, OLA Electric raised Rs 2,763.03 crore from anchor investors by offering 364 million shares.

• Price Band: Rs 72 to Rs 76 per equity share
• Retail Investors: Must bid for at least one lot of 195 shares, totaling Rs 14,820
• Employee Reservation: 797,101 shares reserved for employees at a Rs 7 discount per share

Key Dates:

• Allotment Finalization: August 07
• Listing Date: Expected on August 09

Company Overview

OLA Electric, primarily engaged in manufacturing electric vehicles and core components like battery packs, motors, and vehicle frames, is set to become the first pure-play electric-2W (E2W) manufacturer listed on domestic stock exchanges. The company has launched seven new products and announced four more. Backed by prominent investors such as SoftBank Investment Advisers, Tiger Global Management, and Alpha Wave Global, OLA Electric is a notable player in the market.

Expert Opinion

Choice Broking has given a “Subscribe with Caution” rating for the IPO. While they commend OLA Electric’s significant capital investments and strong market position, they highlight concerns regarding the company’s reliance on government subsidies and its current loss-making status. The future profitability of the company could be impacted if the Electric Mobility Promotion Scheme (EMPS) is not extended beyond September 2024.

Book-Running Lead Managers and Registrar

The IPO is being managed by 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. Link Intime India is the registrar for the issue.

Investors are closely watching the OLA Electric IPO as it represents a significant step for the electric vehicle industry in India. The success of the IPO could set a precedent for future offerings in the rapidly growing electric mobility sector.