Ola Electric IPO Day 1: Subscription rise; Check today's GMP, other details

Ola Electric IPO: Ola Electric Mobility, India's leading player in the electric two-wheeler market, has received strong participation from investors on the first day of its initial public offering (IPO). The IPO, available at a price band of Rs 72-76 and with a lot size of 195 shares, has been subscribed 0.17 times by 11:23 AM on August 2, 2024.

Retail investors led the charge, subscribing to the IPO 0.78 times, followed by non-institutional investors (NII) at 0.07 times. However, there were no bids from qualified institutional buyers (QIB) as of now.

Investors can bid for the Ola Electric IPO until it closes on Tuesday, 6 August 2024. The minimum bid is 195 shares, and in multiples thereof, with a minimum investment requirement of Rs 14,820 for retail investors.

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Ola Electric IPO grey market premium (GMP)

The grey market premium (GMP) for the Ola Electric IPO is quoted at Rs 12-15 or 16-20 per cent at the upper end of the IPO price band. The GMP usually indicates the demand for a public issue.

Key details of the Ola Electric IPO

The public issue comprises a fresh issue of 723,684,210 equity shares, aggregating up to Rs 5,500 crore, and an offer for sale by promoters and investors, offloading 84,941,997 shares with a face value of Rs 10 apiece. The basis of allotment for the company's shares is expected to be finalised on Wednesday, August 7, 2024. Ola Electric shares are anticipated to list on the bourses—BSE and NSE—on Friday, August 9, 2024.

READ MORE: Ola Electric IPO GMP soars: Will it ride the tide? Check brokerage calls

Link Intime India is the registrar for the IPO, while BofA Securities India, Goldman Sachs (India) Securities Private, Kotak Mahindra Capital Company, Axis Capital, SBI Capital Markets, Citigroup Global Markets India, BoB Capital Markets, and ICICI Securities are the book-running lead managers for the issue.

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Objectives of Ola Electric IPO

The Bhavish Aggarwal-led company intends to use the net proceeds from the public issue to repay debt, expand its gigafactory, fund organic growth initiatives, and support research and product development, with the remaining proceeds allocated for general corporate purposes.

About Ola Electric

Ola Electric Mobility Limited, which commands nearly a 35 per cent  market share in India's electric two-wheeler market in FY24, is a pure electric vehicle (EV) player in India. The company is building vertically integrated technology and manufacturing capabilities for EVs and EV components, including cells. It manufactures EVs and core components like battery packs, motors, and vehicle frames at the Ola Futurefactory.