OLA Electric’s first public offering (IPO) saw the company give retail investors no more than 10% of the total.
The eagerly expected OLA Electric initial public offering (IPO) opened for bids on August 2 and ended on August 6. The issue was subscribed to 0.38 times on its first day, indicating a moderate level of demand. On the last day of the issue, subscriptions exceeded the number of shares offered by four times. Through the sale of new shares and an offer to purchase, the company was able to raise Rs 6,145.56.
IPO GMP for OLA Electric Today
Shares of OLA Electric were offered at a 4% discount to the issue price on the black market. The illicit exchange of shares prior to listing occurs on the shadow market, often known as the grey market. Market players monitor listing benefits by monitoring GMP.
Price Band
The price band was kept between Rs 72 to Rs 76 per equity share.
Allotment and Listing
The allotment of shares was finalised on August 07. Thereafter, the listing is expected to take place on August 09, as per the tentative schedule.
Minimum Investment Required
A retailer had to bid for at least one lot of 195 shares which amounts to Rs 14,820. There were different lots for NIIs and QIBs.
Employee Reservation
The company kept aside 797,101 shares for employees, which were offered to them at a discount of Rs 7 to the issue price.
About OLA Electric
At the Ola Futurefactory, Ola Electric primarily produces electric vehicles and a few essential parts for them, like motors, battery packs, and vehicle chassis. Seven new goods have been released by the company, and four more have been revealed. Prominent investors include Temasek, MacRitchie Investments, Tiger Global Management, Alpha Wave Global, SoftBank Investment Advisers, and others support the company. Since the majority of currently listed peers are mostly involved in the manufacturing or sales of internal combustion engines (ICE) for 2Ws, OLA Electric will be the first pure-play electric-2W (E2W) company to list on local stock exchanges.
Expert’s take
“Looking at the subscription figures and mood of the markets, there are very high possibilities of flat to discounted listing in the range of negative -5-10% in the best-case scenario. Discounted listing would be justified on the back of weak financials and the risk of negative net cash flows in the past, and future negative cash flows. Considering all the factors, we advise only risk-taking investors to continue to hold with a minimum holding period of 2-3 years. What if the stock is available well below its issue price, we recommend risk-taking investors to accumulate on every dip to be part of 2-3 years of journey. The long-term story is intact but we may see a lot of ups and downs in the short term,” said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.
Registrars and BRLMs
The book-running lead managers for the OLA Electric IPO include 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. The registrar for the issue is Link Intime India.
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