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Ola Electric Mobility Limited’s Initial Public Offering (IPO) was fully subscribed on its second day of bidding, despite prevailing weak market sentiments. The ₹6,145.56 crore IPO saw bids for 49,43,85,840 shares against the offered 46,51,59,451 equity shares, achieving an overall subscription rate of 1.06 times.
The Employee Portion led the subscription with a notable 8.98 times, while the Retail Portion and Non-Institutional Investors Portion subscribed 2.87 times and 1.11 times, respectively. The Qualified Institutional Buyer (QIB) Portion, however, was subscribed only 0.40 times. The IPO opened on August 2, 2024, and will close on August 6, 2024.
Ahead of the IPO, Ola Electric raised ₹2,763 crore from anchor investors, including major foreign and domestic institutions such as SBI MF, HDFC MF, Nippon MF, and Franklin Templeton. Leading brokerage firms such as Anand Rathi and Deven Choksey Research have given a “Subscribe” rating, citing Ola Electric’s strong revenue growth, significant market share in the electric two-wheeler (E2W) segment, and its robust investment in R&D and technology.
The company is known for its Ola Futurefactory, where it manufactures EVs and core EV components like battery packs and motors. Ola Electric’s product lineup includes the Ola S1 Pro, Ola S1, Ola S1 Air, and Ola S1 X+, with plans to expand into international markets. Despite being loss-making, the company’s market cap-to-sales ratio is considered high but justified by its market leadership and growth potential.
The book-running lead managers for the IPO include Kotak Mahindra Capital, Citigroup Global Markets, and Goldman Sachs, with Link Intime India as the registrar. The shares are set to be listed on the BSE and NSE.