Ola Electric IPO | Business Upturn

Ola Electric shares surge 17% after listing at issue price

Aditya Bhagchandani — Fri, 09 Aug 2024 05:47:49 +0000

Ola Electric Mobility’s shares had a strong debut on the stock exchange today. Despite listing at the issue price of ₹76, the stock quickly surged by over 17%, reaching a high of ₹87.43 on the NSE within minutes of becoming available for public trading.

IPO Overview

Issue Price: ₹76
Listing Price: ₹76
High on First Day: ₹87.43
Current Price: ₹88.94 (as of 11:15 AM)

IPO Details

Total Amount Raised: ₹6,146 crore
Subscription Rate: 4.26 times
Anchor Investors: Nomura, HDFC Mutual Fund, SBI Mutual Fund

The IPO, which closed on August 6, had received a lukewarm response compared to market expectations. Despite the initial underwhelming subscription, the stock’s price jump reflects positive investor sentiment and strong market interest.

As of 11:15 AM, Ola Electric’s shares were trading 17.02% higher at ₹88.94, indicating a strong start for the company in the public market.

Ola Electric Listing: Stock lists at same price as of IPO price of Rs 76 on exchanges

Aditya Bhagchandani — Fri, 09 Aug 2024 04:32:09 +0000

Ola Electric Mobility made its debut on the stock market at ₹76 per share, matching its IPO issue price. The listing comes after the IPO received a decent response from market participants, being subscribed 4.27 times, mainly driven by interest from qualified institutional buyers and retail investors.

Market Performance

IPO Subscription: The IPO was open for bidding from August 2 to August 6, with shares offered at a fixed price band of ₹72-76 per share. The issue was well-received, leading to an overall subscription of 4.27 times.
Listing Price: Despite a Grey Market Premium (GMP) of ₹-3, which indicated a potential listing at ₹73 (a 4% discount), the stock listed at ₹76, the upper end of its price band, reflecting stability at the issue price.
Capital Raised: Ola Electric raised ₹6,146 crore from the IPO. This included ₹5,500 crore from fresh share issuance and ₹646 crore from an offer-for-sale (OFS) of up to 8.49 crore shares.

Use of Funds

The company plans to allocate ₹1,600 crore of the proceeds towards research and development (R&D). However, Ola Electric has noted the inherent risks involved, cautioning that the investments may not result in tangible assets or anticipated outcomes.

Business Overview

Ola Electric is a prominent player in the Indian electric vehicle (EV) sector with integrated technology and manufacturing capabilities. The company has delivered seven EV products and announced four new ones, supported by a robust omnichannel distribution network that includes 870 experience centers and 431 service centers as of March 31, 2024.

Financial Performance

The company has been operating at a loss, reporting a loss of ₹1,584 crore in FY24, up from ₹1,472 crore in FY23. Despite the losses, the company’s growth potential in the rapidly expanding EV market has garnered significant interest from investors.

MapMyIndia sends legal notice to Ola Electric for data breach ahead of its IPO

Markets Desk — Mon, 29 Jul 2024 11:09:19 +0000

CE Info Systems, the parent company of MapMyIndia, has issued a legal notice to Ola Electric, accusing the electric vehicle manufacturer of copying its proprietary data. This development comes as Ola Electric, led by Bhavish Aggarwal, recently launched its own mapping service in India.

In the legal notice, MapMyIndia alleges that Ola Electric breached the license agreement established in 2022, which allowed Ola to use MapMyIndia’s navigation services for its S1 Pro electric scooter. According to MapMyIndia, the agreement strictly prohibited Ola Electric from co-mingling the licensed product with any similar competing products. It also barred the company from engaging in any reverse engineering or attempts to extract or copy the source code from MapMyIndia’s APIs or related software.

“By caching and saving our data, Ola Electric has violated the licensing agreement signed in 2021,” asserts MapMyIndia in its notice. The Delhi-based firm further stated its intention to pursue appropriate legal action against Ola Electric, which could include both civil and criminal proceedings.

Ola Electric Mobility IPO price set at Rs 72-76 per share, Rs 7 discount for eligible employees

Markets Desk — Sun, 28 Jul 2024 22:58:28 +0000

The much-waited initial public offering (IPO) of Bhavesh Aggarwal’s Ola Electric Mobility is set to open for subscription on August 1 and will close for subscription on August 6. Ola Electric Mobility IPO price band is set at Rs 72-76 per share. The IPO will also have a discount of Rs 7 for eligible employees bidding in the portion reserved for employees.

75% of the Ola Electric will be reserved for Qualified Institutional Buyers (QIBs), 15% for Non-institutional investors (NIIs), 10% for retail investors and shares worth $55 million for eligible employees.

Ola Electric will use the proceeds from the IPO for capital expenditures, debt repayment, and research and development. The company competes with major players like TVS Motors, Bajaj Auto, and Ather Energy.

The draft red herring prospectus was filed with the Securities and Exchange Board of India (SEBI) on December 22, 2023. Key investment banks on the deal include Kotak Mahindra Capital, Goldman Sachs, and ICICI Securities. The law firm Cyril Amarchand Mangaldas is advising on legal matters.