Ola Electric IPO Gets Fully Subscribed On Second Day Of Share Sale
The Rs 6,146-crore Ola Electric IPO was subscribed 1.06 times, with retail investors and employees bidding for the highest number of shares.
The initial public offering of Ola Electric Mobility Ltd. was fully subscribed on the second day of the share sale, underscoring investor appetite for electric mobility in the world's third-largest automotive market.
The offering—the first by an Indian automaker in nearly two decades—was subscribed 1.06 times as of 5:30 pm on Monday as investors bid for 49.44 crore shares against 46.51 crore shares on offer, stock exchange data showed. The retail portion of the IPO was subscribed 2.83 times while employees picked up 8.84 times the number of shares allotted to them. Non-institutional investors bid for 1.11 times while qualified institutional buyers subscribed to 40% of the shares allotted for them.
On Aug. 2, India’s largest electric two-wheeler maker launched an IPO to raise as much as Rs 6,146 crore by selling 80.46 crore shares in a mix of fresh stock (72.37 crore shares worth Rs 5,500 crore) and an offer-for-sale (8.49 crore shares worth Rs 645.56 crore) by existing shareholders.
The price band is set at Rs 72-76 apiece, at the upper end of which the company is valued at Rs 33,522 crore (about $4 billion)—a steep discount from $5.4 billion at its last funding round in December 2023 and $7 billion anticipated by founder promoter Bhavish Aggarwal.
“The offering is attractively and aggressively priced to let investors make money,” Aggarwal had told NDTV Profit in the run-up to the IPO. The company’s focus remains firmly on long-term success, underscored by growing monthly volumes, he had said.
On Aug. 1, anchor investors—led by mutual funds—picked up nearly half of the stock.
The offering closes on Tuesday, Aug. 6. A listing is likely on Aug. 9.
