Ola Electric IPO gets subscribed over 4X on day three of bidding

Ola Electric’s initial public offering was subscribed 4.26 times on Tuesday, its third and final day of subscription, according to data from BSE. 

The public issue was fully subscribed on Monday, its second day of subscription, after getting subscribed 35% on the opening day on Friday.

The IPO, one of the largest in India this year, saw a jump in bids from qualified institutional buyers (QIBs) on the third day, with the portion getting subscribed over 5X. The category had been subscribed 40% till the second day. 

Non-institutional investors portion was subscribed about 2.39 times on the final day. The category was fully subscribed on day two compared to 20% on the first day. 

The employee reserved category led the subscription, with the offering subscribed about 11.66 times followed by the retail category, subscribed about 3.85 times. 

Both retail and employee reserved categories saw robust bidding on all three days of bidding.

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Ola Electric 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.

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. The company will be making its debut on India’s stock exchanges on August 9.

Ola Electric’s IPO subscription opened for anchor investors on August 1 and raised Rs 2,763 crore from 80 domestic and foreign funds. 

Anchor investors allotted shares include State Bank of India Mutual Fund, HDFC Mutual Fund, Nomura India Investment Fund, and Goldman Sachs (Singapore) Pte Ltd. 

According to a report by Reuters, the SoftBank-backed company received $2 billion worth of bids from institutions. 

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