The initial public offering (IPO) of Ola Electric Mobility has garnered significant interest, being oversubscribed by 4.26 times on its final day of bidding. Despite the high level of interest, the IPO fell short of market expectations. The issue, valued at Rs 6,145.56 crore, saw a total of 1,98,14,05,530 shares requested against the 46,51,59,451 equity shares available.
The breakdown of subscriptions shows a strong performance in the Qualified Institutional Buyer (QIB) segment, which was subscribed 5.31 times. The Retail Portion and Non-Institutional Investors Portion were subscribed 3.85 times and 2.39 times, respectively. The Employee Portion was particularly sought after, with a subscription rate of 11.66 times.
This IPO comes amid a broader market downturn that has affected not only Indian stock markets but global ones as well. As of August 6, 2024, the Grey Market Premium (GMP) for the Ola Electric IPO is reported at Rs 0, indicating that the anticipated listing price is expected to align with the upper end of the price band, which is Rs 76. This suggests an anticipated percentage change in value per share of 0.00%.
Despite the strong subscription numbers, investor enthusiasm appears tempered by the company’s financial performance and market conditions. For the fiscal year 2023-24, Ola Electric reported a revenue of Rs 5,243.27 crore and a net loss of Rs 1,584.40 crore. This is a significant increase in revenue compared to Rs 2,782.70 crore the previous year, but the company’s net loss also widened from Rs 1,472.08 crore in 2022-23.
The IPO has seen varied opinions from brokerage firms. Some analysts point to Ola Electric's leadership in the electric two-wheeler market, its focus on EVs, and favorable regulatory conditions as positive aspects. However, there are concerns about the company's historical losses and its current high valuation.
The allocation of shares for the Ola Electric IPO is expected to be finalized on Wednesday, August 7, 2024. Link Intime India serves as the registrar for the issue. Shares of Ola Electric are anticipated to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on August 9, Friday.
The lead managers for the IPO include BofA Securities India, Axis Capital, Kotak Mahindra Capital, SBI Capital Markets, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, and BOB Capital Markets.
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