Ola Electric IPO subscribed 35% on day one

Ola Electric’s initial public offering (IPO) was subscribed 35% on day one of its opening, with the retail investors category leading with shares subscribed 1.57 times.

The non-institutional investor category was subscribed 20%. However, qualified institutional buyers failed to see any bids on day one. A portion of the offering reserved for employees was booked 4.88 times.

Bhavish Aggarwal-led Ola Electric’s IPO constituted a fresh issue of Rs 5,500 crore and an offer for sale (OFS) of 8.4 crore shares. According to the red herring prospectus (RHP) filed by the company, Aggarwal will offload 37.9 million shares in the IPO. 

The company has priced its IPO between Rs 72 and Rs 76 per share with a face value of Rs 10 and will be valued at Rs 33,500 crore (around $4 billion) at the upper end of the offering. 

The IPO subscription opened for anchor investors on Thursday and it raised Rs 2,763 crore from 80 domestic and foreign funds. The anchor investors who have been allotted shares include State Bank of India Mutual Fund, HDFC Mutual Fund, Nomura India Investment Fund, and Goldman Sachs (Singapore) Pte Ltd. 

A Reuters report on Thursday said that the company received $2 billion worth of bids from institutions. 

Ola Electric is the first pure-play EV maker and the second company from Bengaluru to list on Indian stock exchanges after GoDigit General Insurance, which was listed earlier this year.

The SoftBank-backed company will close its IPO subscription on Tuesday (August 6). 

According to the RHP, the EV two-wheeler maker reported widening losses of Rs 1,584 crore in the year ended March 31, 2024, compared with a loss of Rs 1,472 crore in the previous year.

(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director in Ola Electric)