Ola Electric IPO Gets Full Subscription on Day 2, Booked 1.06 Times

Neha KamathAugust 6, 2024

Automobile

Post Views: 3,750

Three points you will get to know in this article:

The 2nd day of the bidding saw full subscription for the Ola Electric Mobility IPO
Overall, the issue was subscribed 1.06 times, retail section booked 2.87 times.
Offering got bids of 49,43,85,840 shares within a price range of ₹72-76, compared to 46,51,59,451 equity shares that were offered.

Ola Electric IPO Is Fully Subscribed

Investor reaction to Bengaluru-based EV manufacturer Ola Electric’s first public offering (IPO) was strong.

By the time the second day of bidding concluded, all of the IPO’s seats were reserved. 490.6 million shares were bid for out of the 465.2 million shares that were available in the Rs 6,146 crore offering. This was India’s largest initial public offering (IPO) of the year and the first by an electric vehicle manufacturer.

With 8.98 times as many subscribers, the employee portion of the IPO attracted the most attention. With a subscription rate of 2.87 times, the retail segment trailed closely behind.

Additionally, non-institutional investors participated actively, purchasing 1.11 times the total number of shares that were made available. Yet, qualified institutional buyers (QIBs) exhibited comparatively low interest, with the percentage being subscribed to roughly 0.40 times.

Where Will Ola Electric’s IPO Spend the Funds?

Ola Electric will be able to invest more in research and development for upcoming innovations and products as well as expanding its capacity for producing cells thanks to the IPO. Ola Electric Mobility (OEML) intends to use Rs 1,227.6 crore of its Rs 5,500 crore initial public offering (IPO) to expand the capacity of its cell production unit to 6.4 GWh from 5 GWh, as per the company’s prospectus.

It plans to allocate Rs 1,600 crore for R&D and product development, Rs 800 crore for debt repayment, and Rs 350 crore for efforts aimed at organic growth.

What Was Ola Electric’s IPO Price Band That Was Offered?

The IPO is scheduled to end on August 6 after opening on August 2. With a face value of Rs 10, the price range for the shares has been established at Rs 72–Rs 76 per equity share.

An impressive 35% of subscribers signed up for the IPO on the first day of bidding. Before the IPO subscription started, significant investors contributed Rs 2,763 crore.

Since its founding in 2017, Ola Electric has grown to be a significant player in the electric vehicle (EV) market. At its state-of-the-art Ola Futurefactory, the company focuses in producing electric vehicles and necessary components.

Ola Electric has considerably increased the scope of its product offering since its founding. The Ola S1 Pro was the company’s first electric car model, released in December 2021. Since then, the Ola S1, Ola S1 Air, Ola S1 X, and Ola S1 X+ have all been released.