Ola Electric's IPO oversubscribed 4.25 times on final day
Ola Electric's initial public offering (IPO) has been oversubscribed 4.25 times today, the final day of bidding. The ₹6,146-crore IPO received bids for nearly 198 crore equity shares against an offer size of approximately 47 crore shares. Qualified Institutional Buyers (QIBs) and retail investors were the primary subscribers, with QIBs subscribing over five times and retail investors almost four times their allotted quotas respectively.
High net worth individuals and employees show interest
High net worth individuals also showed interest in Ola Electric's IPO, bidding over two times the portion allocated for them. Employees of the company actively participated in the public issue, purchasing nearly 12 times their reserved portion. Ola Electric had set aside shares worth ₹5.5 crore specifically for its employees at a discounted rate of ₹7 per share compared to the final issue price.
Ola Electric's fundraising and expenditure plans
The Bengaluru-based electric vehicle manufacturer aims to raise ₹5,500 crore through a fresh issue component and an additional ₹645.6 crore through an offer-for-sale (OFS). The price band for the public issue is set at ₹72-76 per share. Shareholders participating in the OFS include CEO Bhavish Aggarwal, Indus Trust, Alpine Opportunity Fund VI LP, Matrix Partners India Investments, Tekne Private Ventures XV LP and Ashna Advisors LLP, among others.
Ola Electric's future investment and debt repayment plans
Ola Electric plans to invest ₹1,227.64 crore in expanding its cell manufacturing plant capacity from 5GWh to 6.4GWh. The company will also allocate ₹800 crore for debt repayment, ₹1,600 crore for research and product development, and ₹350 crore for organic growth initiatives. Despite a successful subscription, Ola Electric IPO is failing to attracting any premium in the grey market. At the time of writing, the grey market premium was flat (₹0).
Ola Electric's financial performance and share allotment timeline
Ola Electric posted a net loss of ₹1,584.4 crore for fiscal 2024, widening from a loss of ₹1,472 crore in the previous year. However, revenue from operations significantly increased to ₹5,009.8 crore from ₹2,630.9 crore during the same period. The allotment of IPO shares will be finalized by August 7 with equity shares credited to the demat accounts of successful investors by August 8. Trading in Ola Electric shares will begin on stock exchanges from August 9 onward.
