The IPO of Ola Electric was subscribed 106 per cent on Monday, the second last day of the issue. Investors placed bids for 494 million shares, worth Rs 3,754 crore, against 465 million on offer in the main book of the Rs 6,146-crore issue. The institutional portion of the issue garnered 40 per cent subscription, the high net worth individual portion more than one time, and the retail portion nearly three times.
The electric two-wheeler maker has already 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, as well as 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 gigafactory, and for research and development.
The 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.
First Published: Aug 05 2024 | 6:22 PM IST
