The initial public offer (IPO) of electric vehicle (EV) maker Ola Electric mobility opened for subscription on Friday, August 2. The Rs 6,145.56-crore IPO is a mix of fresh issue of shares of up to Rs 5,500 crore and an offer-for-sale (OFS) portion of 8.49 crore shares, aggregating to Rs 645.56 crore. The company has set the issue price band in the range of Rs 72-76 per share at face value of Rs 10 each.
By around 12 pm, the issue was subscribed by 0.18 times, getting bids for over 8.46 crore shares against more than 46.51 crore shares on offer. The employee allocation of 8.46 lakh shares was booked 3 times while the retail portion was subscribed 0.85 times. Investors submitted bids for 7.24 crore shares against 8.46 crore shares in the retail category.
The Non-institutional Investor allocation was subscribed 0.08 times with bids for 95.90 lakh shares compared to 12.72 lakh shares available.
Ola Electric raised Rs 2,763 crore in the anchor round ahead of the public subscription. The anchor rouse saw participation from leading investors including SBI Mutual Fund (MF), Nippon India MF, Bharti Axa Life Insurance Company, Government Pension Fund Global, Goldman Sachs (Singapore) Pte Ltd, and Kotak Mahindra Life Insurance Company.
Ola Electric IPO: Key Dates
Bidding window: August 2 to August 8
Allotment: August 7
Refund: August 8
Credit of shares: August 8
Listing: August 9.
IPO Details And Objective
Ola Electric Mobility Ltd has reserved 75% of the net issue (excluding the employee allocation) for qualified institutional buyers, 15% for non-institutional investors and 10% for retail investors.
The company has reserved shares worth Rs 5.5 crore for its employees.
With the OFS portion, the company promoters Bhavish Aggarwal and Indus Trust are offloading 3.79 crore and 41.79 lakh equity shares. Further, the existing largest shareholder in Ola Electric Mobility Lts, SVF II Ostrich (DE) LLC is offloading 2.38 crore shares
As per the red herring prospectus (RHP), Rs 1,227.6 crore of the net proceeds from the IPO will be used for capacity expansion of its cell manufacturing plant to 6.4 GWh from 5 GWh.
Further, Rs 1,600 crore will be used for research and product development. Another Rs 800 crores will be deployed for repaying debts of its subsidiary, and organic growth initiatives.
About Ola Electric Mobility Ltd
Ola Electric Mobility Limited manufactures electric vehicles (EVs) and EV components such as motors, battery packs, and vehicle frames.
The company is the largest player two-wheeler electric vehicle segment in India. Its portfolio features Ola S1 Air, S1 Pro, S1 X (3 kWh), S1 X (4 kWh), S1 X+ and S1 X (2 kWh).