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PremiumOla Electric IPO Day 2 highlights: On the second day of bidding, the Ola Electric Mobility IPO was completely subscribed. At 8.98 times, the employee portion was the most subscribed to. While the qualified institutional buyer (QIBs) portion was subscribed 40%, the retail portion and non-institutional investors portion were subscribed 2.87 times and 1.11 times, respectively.
The initial share sale received bids for 49,43,85,840 shares, as against 46,51,59,451 shares on offer, according to BSE data.
Investor interest in the ₹6,145 crore initial share offer of electric two-wheeler business Ola Electric Mobility was tepid, with 35% of the issue subscribed on Friday, August 2, the opening day of the bidding process.
Retail investors led the initial public offering (IPO) of the firm, subscribing 1.57 times the amount allotted for them.
Bids were received for 16.31 crore shares of the 46.51 crore shares that were offered in the offering, which closes on Tuesday, August 6. Ola Electric IPO subscription status was 35% on the first day of bidding.
The price band for the offering has been set at between ₹72 and ₹76 for each equity share with a face value of ₹10. Major investors provided the company ₹2,763 crore before the IPO subscription period began on Thursday, August 1. Ola Electric's ₹6,146 crore IPO is the biggest since the state-owned Life Insurance Corp (LIC) of India's ₹21,000 crore IPO in May 2022. The IPO comprises of a fresh issue of equity shares up to ₹5,500 crore and an offer for sale (OFS) of 8.49 lakh equity shares valued at ₹645.56 crore at the upper end of the price range by investors and promoters. Under the OFS, Ola Electric's founder, Bhavish Aggarwal, will sell around 3.8 crore shares.
Ola Electric IPO subscription status is 1.06 times, as per BSE data.
The quota for retail investors received 2.87 times subscription, while the non institutional investors part got subscribed 1.11 times. The portion for Qualified Institutional Buyers (QIBs) portion is booked 40%, and the employee portion was booked 8.98 times.
Ola Electric Mobility IPO GMP today or grey market premium is +4.60. This indicates Ola Electric share price were trading at a premium of ₹4.60 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Ola Electric share price was indicated at ₹80.6 apiece, which is 6.05% higher than the IPO price of ₹76.
Grey market activity over the past 12 sessions indicates that the current GMP ( ₹4.60) is trending downward. Analysts at investorgain.com estimate that the lowest GMP is ₹0 and the maximum GMP is ₹16.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
At 16:24 IST, Ola Electric IPO subscription status is 1.02 times, as per BSE data.
The quota for retail investors received 2.83 times subscription, while the non institutional investors part got subscribed 98%. The portion for Qualified Institutional Buyers (QIBs) portion is booked 40%, and the employee portion was booked 8.84 times.
The business model of the corporation is centered on technology. In its R&D facilities and Battery Innovation Center (BIC), the business employs engineers with expertise in electrical, electronics, chemical, mining, automotive, and mechanical engineering. In terms of R&D, the corporation employed 959 people as of March 24. The R&D platform comprises electronics, motor and drivetrain, cells and battery packs, manufacturing technologies, and networked software (MoveOS). Because it develops EV technology in-house, the firm has substantial control over the performance of its products.
At 15:30 IST, Ola Electric IPO subscription status is 79%, as per BSE data.
The quota for retail investors received 2.78 times subscription, while the non institutional investors part got subscribed 94%. The portion for Qualified Institutional Buyers (QIBs) portion is booked 1%, and the employee portion was booked 8.75 times.
“Ola Electric’s volume stood at ~330,000 units in FY24, doubling YoY, led by strong outperformance, compared to e2W industry volume growth of ~30%. This robust outperformance led to a significant jump in the market share, from 21% in FY23 to 35% in FY24," said Elara Capital in its report.
At 14:45 IST, Ola Electric IPO subscription status is 75%, as per BSE data.
The quota for retail investors received 2.71 times subscription, while the non institutional investors part got subscribed 86%. The portion for Qualified Institutional Buyers (QIBs) portion is yet to be booked, and the employee portion was booked 8.66 times.
As of March 28, 2022, Ola Electric has been granted a 20GWh capacity under the Cell Production-Linked Incentive (PLI) Scheme. The business has ventured into the production of 4680 cells with a 1GWh starting capacity; these cells are now undergoing testing.
Early in CY25 is when commercial production is expected to start. This project is in line with its objective of enhancing the manufacturing process's vertical integration. The business plans to increase capacity beyond the current 1.0GWh to 5.0GWh by February 2025 (earlier than October 2024), 6.4GWh by April 2025, and 20GWh in stages starting from Q2FY26, in accordance with GOI prerequisites.
At 13:48 IST, Ola Electric IPO subscription status is 73%, as per BSE data.
The quota for retail investors received 2.65 times subscription, while the non institutional investors part got subscribed 83%. The portion for Qualified Institutional Buyers (QIBs) portion is yet to be booked, and the employee portion was booked 8.50 times.
A 90-day lock-in period applies to 50% of the equity shares allotted to anchor investors under the anchor investor portion, and a 30-day lock-in period is imposed on the remaining equity shares allotted to anchor investors under the anchor investor portion.
At 12:54 IST, Ola Electric IPO subscription status is 70%, as per BSE data.
The quota for retail investors received 2.58 times subscription, while the non institutional investors part got subscribed 76%. The portion for Qualified Institutional Buyers (QIBs) portion is yet to be booked, and the employee portion was booked 8.31 times.
The brokerage warned that Ola Electric would face difficulties if it could not secure OEM clients for its cell production. It is difficult for even Tesla to stable 4680 cells, therefore it will be challenging to gain scale and cost benefits for Ola Electric's 2W arm. Additionally, after listing, its emphasis may change to a balance between market share and profitability.
At 12:12 IST, Ola Electric IPO subscription status is 67%, as per BSE data.
The quota for retail investors received 2.50 times subscription, while the non institutional investors part got subscribed 72%. The portion for Qualified Institutional Buyers (QIBs) portion is yet to be booked, and the employee portion was booked 8.15 times.
The firm has a fairly brief operational history, with its first product introduced in August 2021, according to brokerage Choice Broking Research. Even though the business is expanding, it has recorded losses in both operations and net worth. OEML reported a 266.3% CAGR rise in the consolidated revenue, which amounted at Rs. 5,009.8cr in FY24, on the strength of a 296.7% CAGR growth in the E2W sales volume during FY22–24.
With a net cost of revenue that grew at a slower pace than top-line growth—201.8% CAGR—gross margin in FY24 was 12.6%, compared to -28.8% in FY22. While operating leverage helped to increase EBITDA margin to -25.3% in FY24, consolidated EBITDA remained negative throughout the whole period.
At 11:27 IST, Ola Electric IPO subscription status is 64%, as per BSE data.
The quota for retail investors received 2.42 times subscription, while the non institutional investors part got subscribed 68%. The portion for Qualified Institutional Buyers (QIBs) portion is yet to be booked, and the employee portion was booked 7.88 times.
At 10:42 IST, Ola Electric IPO subscription status is 58%, as per BSE data.
The quota for retail investors received 2.25 times subscription, while the non institutional investors part got subscribed 55%. The portion for Qualified Institutional Buyers (QIBs) portion is yet to be booked, and the employee portion was booked 7.47 times.
At 10:12 IST, Ola Electric IPO subscription status is 47%, as per BSE data.
The quota for retail investors received 1.91 times subscription, while the non institutional investors part got subscribed 40%. The portion for Qualified Institutional Buyers (QIBs) portion is yet to be booked, and the employee portion was booked 5.66 times.
“On account of the positive EV market outlook, favourable regulatory environment, the announcement of new models, and the upcoming cell manufacturing unit, we have a positive view of the company from a long-term perspective. We recommend to SUBSCRIBE the IPO for long-term gains," the brokerage said in its report.
The primary driver for Ola Electric Mobility, in Kejriwal's opinion, is that in addition to the electric vehicles (EVs) and two-wheeler EVs that they manufacture, Bhavish Aggarwal will soon be introducing his EV batteries. That may occur in the next four to six months. Whenever that starts, that would be a major trigger for Ola Electric, and that will improve his margins significantly, and it could in a short time thereafter result in the company becoming profitable.
Ola Electric Mobility IPO GMP today or grey market premium is +9.60. This indicates Ola Electric share price were trading at a premium of ₹9.60 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Ola Electric share price was indicated at ₹85.6 apiece, which is 12.63% higher than the IPO price of ₹76.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
Ola Electric Mobility IPO GMP today or grey market premium is +9.60. This indicates Ola Electric share price were trading at a premium of ₹9.60 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Ola Electric share price was indicated at ₹85.6 apiece, which is 12.63% higher than the IPO price of ₹76.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
