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PremiumOla Electric IPO Day 3 highlights: Driven by demand from retail investors and non-institutional investors, the ₹6,145-crore initial public offer of electric two-wheeler company Ola Electric Mobility was completely subscribed on the second day of bidding on Monday.
The initial share sale received bids for 49,43,85,840 shares, as against 46,51,59,451 shares on offer, translating into 1.06 times subscription, according to the BSE data.
While the quota for non-institutional investors was subscribed 1.11 times, the category for Retail Individual Investors (RIIs) received 2.87 times as many subscriptions. Qualified Institutional Buyers (QIBs) received a 40% subscription, and the employee portion was booked 8.98 times.
On Friday, August 2, the first day of the bidding process, 35% of the ₹6,145 crore initial share offer of electric two-wheeler company Ola Electric Mobility was subscribed, indicating a lackluster level of investor interest.
The IPO consists of an offer for sale (OFS) of 8.49 crore equity shares valued at ₹645.56 crore at the higher end of the price range by investors and promoters, in addition to a new issue of equity shares up to ₹5,500 crore. Under the OFS, Ola Electric's founder, Bhavish Aggarwal, will sell around 3.8 crore shares.
At 17:45 IST, Ola Electric IPO subscription status is 4.26 times, as per BSE data.
The quota for retail investors received 3.86 times subscription, while the non institutional investors part got subscribed 2.39 times. The portion for Qualified Institutional Buyers (QIBs) portion has been booked 5.31 times, and the employee portion was subscribed 11.67 times.
At 17:00 IST, Ola Electric IPO subscription status is 4.26 times, as per BSE data.
The quota for retail investors received 3.85 times subscription, while the non institutional investors part got subscribed 2.39 times. The portion for Qualified Institutional Buyers (QIBs) portion has been booked 5.31 times, and the employee portion was subscribed 11.66 times.
At 16:12 IST, Ola Electric IPO subscription status is 4.25 times, as per BSE data.
The quota for retail investors received 3.81 times subscription, while the non institutional investors part got subscribed 2.39 times. The portion for Qualified Institutional Buyers (QIBs) portion has been booked 5.31 times, and the employee portion was subscribed 11.59 times.
The business plans to pay down debt accumulated by its subsidiary, OET; support expenditures for organic growth efforts; engage in research and product development; and use the net proceeds for general corporate reasons. Its subsidiary OCT will have to spend capital money to increase the plant's capacity from 5 GWh to 6.4 GWh, which is categorised as phase 2 of the expansion plan.
At 15:30 IST, Ola Electric IPO subscription status is 3.88 times, as per BSE data.
The quota for retail investors received 3.75 times subscription, while the non institutional investors part got subscribed 2.37 times. The portion for Qualified Institutional Buyers (QIBs) portion has been booked 4.66 times, and the employee portion was subscribed 11.41 times.
"Ola Electric IPO offers an opportunity to invest in a leading player in India’s rapidly growing 2W electric vehicle market. What I appreciate about the company is its strong R&D setup supported by its own Gigafactory. I firmly believe that these two initiatives will help the company maintain its position as a leader in the EV market, staying ahead of its closest competitors by 18-24 months.
The company’s strategic initiatives, promising growth prospects, and commitment to sustainability make it an attractive investment opportunity. This IPO isn't for those looking to quickly make a profit; it requires patience to potentially achieve a healthy +20% CAGR over the next decade. Taking a long-term view, the IPO suddenly becomes a lot more appealing. Subscription numbers are influenced by market sentiment. Personally, I'm investing in the NII category, which seems to offer a good chance of allotment based on current trends," said Mohit Gulati.
“The company is a pure E2W play emerging leader and with many big and small company’s dropping their hat in the fray, sphere competition is shaping ahead. Ola has laid down its future path with its future factory and Gigafactory to take on any kind of competition. In fact, the company is planning to enter E-2W bikes, three wheeler, cars and most importantly the 4680 Li-thion battery where it mulls it making a global hub for EV batteries. While its top line has been surging year-on-year, its bottom line marked improvement in reduced losses. No doubt it will take some more time to turn the corner and wipe out the losses. Thus it’s a pure long term investment bet," advised Davda.
At 14:15 IST, Ola Electric IPO subscription status is 2.87 times, as per BSE data.
The quota for retail investors received 3.60 times subscription, while the non institutional investors part got subscribed 2.01 times. The portion for Qualified Institutional Buyers (QIBs) portion has been booked 3.03 times, and the employee portion was subscribed 10.95 times.
Ola's business model comprises of its R&D and technology platform with in-house design and development across EV technologies and components, adaptable manufacturing and supply chain platform, and D2C omnichannel distribution platform. Its model is vertically integrated across R&D and technology, manufacturing, supply chain, sales and service, and charging facilities.
At 13:36 IST, Ola Electric IPO subscription status is 2.04 times, as per BSE data.
The quota for retail investors received 3.54 times subscription, while the non institutional investors part got subscribed 1.96 times. The portion for Qualified Institutional Buyers (QIBs) portion has been booked 1.54 times, and the employee portion was subscribed 10.80 times.
The initial offering consists of an offer for sale up to 84.94 million shares and a new issue of ₹5,500 crore. Offer for sale (OFS) is worth at ₹645.96 crore, which is the highest price range. The issuance size would be 6,145.96 crore rupees in total. The company's total market value is expected to be approximately ₹33,500 crore.
The OFS will see the sale of 3.79 crore and 41.79 lakh equity shares, respectively, by promoters Bhavish Aggarwal and Indus Trust. Following the conversion of CCPS, SVF II Ostrich (DE) LLC, the company's largest stakeholder with a 21.98%ownership (or 8.1 crore shares), will offload 2.38 crore shares via the OFS.
At 12:42 IST, Ola Electric IPO subscription status is 1.37 times, as per BSE data.
The quota for retail investors received 3.45 times subscription, while the non institutional investors part got subscribed 1.72 times. The portion for Qualified Institutional Buyers (QIBs) portion has been booked 46%, and the employee portion was subscribed 10.61 times.
Redseer Report states that because to E2Ws' favourable total cost of ownership and the production-linked incentives and subsidies offered by the Indian government to encourage domestic EV manufacture and adoption, EVs are leading the charge in India's electrification of transportation.
The E2W industry in India is predicted to grow at a CAGR of 11% to reach a size of US$35 billion ( ₹2.8 trillion) to US$45 billion ( ₹3.6 trillion) in Fiscal 2028. E2W penetration in India is predicted to increase from roughly 5.4% of domestic 2W registrations in Fiscal 2024 to 41-56% of domestic 2W sales volume by Fiscal 2028. Moreover, areas such as SE Asia, LATAM, and Africa provide a substantial export potential for Indian E2W OEMs.
At 11:39 IST, Ola Electric IPO subscription status is 1.27 times, as per BSE data.
The quota for retail investors received 3.30 times subscription, while the non institutional investors part got subscribed 1.51 times. The portion for Qualified Institutional Buyers (QIBs) portion has been booked 43%, and the employee portion was subscribed 10.33 times.
The business intends to begin placing batteries in its own vehicle, which is already undergoing testing, early next year, according to brokerage InCred Equities. By March 24, a 1.4 GWh cell gigafactory was finished. By February 25, 6.4 GW by April 25, and 20 GW by June 26, it is anticipated to reach 5 GWh. The management reports that in the previous four to five years, worldwide cell prices have decreased by one-tenth, to about $100/kWh. According to management, 1.5 million scooters can be produced using 5Gwh cell capacity.
At 11:39 IST, Ola Electric IPO subscription status is 1.23 times, as per BSE data.
The quota for retail investors received 3.24 times subscription, while the non institutional investors part got subscribed 1.45 times. The portion for Qualified Institutional Buyers (QIBs) portion has been booked 42%, and the employee portion was subscribed 10.13 times.
Bhavish Aggarwal is the Chairman and Managing Director and the promoter of the company. As per the Red Herring Prospectus (RHP), the promoter holds 1,361,875,240 equity shares of face value of ₹10 each in the Company, representing 36.94% of the issued, subscribed and paid-up Equity Share capital of the Company. Through this IPO, the promoter plans to reduce its holding by 18% which is lesser than earlier planned.
The entities forming part of the promoter group are ANI Technologies Private Ltd, BA Family Office LLP, Geospoc Geospatial Services Private Ltd, Goddard Technical Solutions Private Ltd, Indus Trust, Krutrim AI Designs LLP, Krutrim SI Designs Private Ltd, Krutrim Silicon Private Ltd, Naresh Aggarwal HUF, Ola Financial Services Private Ltd, Ola Fleet Technologies Private Ltd, Ola Foundation, Ola Singapore Pte. Ltd, Ola Stores Technologies Private Ltd, and Pisces eServices Private Ltd.
At 10:57 IST, Ola Electric IPO subscription status is 1.19 times, as per BSE data.
The quota for retail investors received 3.16 times subscription, while the non institutional investors part got subscribed 1.37 times. The portion for Qualified Institutional Buyers (QIBs) portion has been booked 41%, and the employee portion was subscribed 9.92 times.
On Wednesday, August 7, the Ola Electric IPO basis for share allocation is anticipated to be finalised. The shares will be deposited to the allottees' demat accounts on the same day as the refund, which is scheduled to start on Thursday, August 8. Ola Electric share price is likely to be listed on BSE and NSE on Friday, August 9.
At 10:24 IST, Ola Electric IPO subscription status is 1.14 times, as per BSE data.
The quota for retail investors received 3.07 times subscription, while the non institutional investors part got subscribed 1.26 times. The portion for Qualified Institutional Buyers (QIBs) portion has been booked 40%, and the employee portion was subscribed 9.73 times.
Prominent brokerage houses, including BP Equities, Anand Rathi, Deven Choksey Research, and Canara Bank Securities, have rated the issue as "Subscribe," citing the company's extensive investment in R&D and technology, strong revenue growth, and substantial market dominance in the E2W category. One of the company's key efforts is the construction of the Ola Gigafactory, which improves supply chain management and cost effectiveness for the production of cells. Ola Electric is well-positioned to profit from the developing EV industry, a favourable legislative environment, and potential in overseas markets thanks to its focus on introducing next-generation EVs and diversifying its product line. Its market capitalisation to sales ratio is deemed high while being loss-making, but it is justified by its dominant position and room for expansion.
“Looking at the subscription figures on day 2, the Ola Electric IPO offer is feeling the heat of risk of underperforming, which can be attributed towards market conditions. As per my readings, I believe subscription demand would be below the company's expectations. Along with the market scenario, very weak financials and negative cash flow for the last 3 years are also a concern for new investors. If investors still wish to take risks, one should consider these factors before investing and have a 2-3 year investment strategy," said Tapse.
Ola Electric Mobility IPO GMP today or grey market premium is +2.50. This indicates Ola Electric share price were trading at a premium of ₹2.50 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 ₹78.5 apiece, which is 3.29% higher than the IPO price of ₹76.
Grey market activity over the previous 13 sessions indicates that the current GMP ( ₹2.50) 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.
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 +2.50. This indicates Ola Electric share price were trading at a premium of ₹2.50 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 ₹78.5 apiece, which is 3.29% higher than the IPO price of ₹76.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
