E2W maker Ola Electric IPO subscribed 35% so far on the opening day

The initial public offer (IPO) of electric two-wheeler maker Ola Electric was subscribed 35 per cent on Friday, the opening day of the issue. Investors placed bids for 163 million shares worth Rs 1,242 crore against 465 million on offer in the main book of the Rs 6,146-crore issue. A day earlier, Ola Electric allotted 364 million shares worth Rs 2,763 crore to anchor investors at Rs 76 apiece, the top end of the price band.

The anchor allotment was made to over 80 domestic mutual funds (MFs), life insurers, and foreign funds. These include SBI MF, HDFC MF, Nippon MF, Templeton Global, Nomura, Amundi, Jupiter Global and Goldman Sachs. Ola’s IPO, the biggest in the domestic markets in over two years, closes on Tuesday.

The Softbank-backed Ola has set the price band of Rs 72-76 per share for its maiden share sale. At the top end of the price band, Ola will be valued at Rs 33,522 crore ($4 billion) on a post-diluted basis. Through the IPO, the Bengaluru-based firm is looking to issue fresh shares worth Rs 5,500 crore which will be utilised to repay debt, expand its giga-factory, and for research and development.

The offer for sale (OFS) portion of the issue is only Rs 646 crore, of which founder Bhavish Aggarwal’s share is Rs 288 crore. About nine other investors are selling stakes, including Tiger Global (Rs 48 crore) and Softbank (Rs 181 crore). Alpine Opportunity and Tekne Private are offloading small quantities at a loss as their acquisition cost is over Rs 111 per share.