Ola Electric IPO Debuts with Strong Interest from Investors

The much-anticipated Ola Electric IPO made its debut on the D-Street today, August 2, with the initial public offering showing a 35% subscription on its very first day, according to the latest data from the Bombay Stock Exchange (BSE).

The retail investors were particularly eager, with their quota being booked 1.57 times. Meanwhile, non-institutional investors subscribed to 20% of their portion. The Qualified Institutional Buyers (QIBs) haven’t placed their bids yet, and the employee segment saw enthusiastic participation, being booked 4.88 times already.

Ola Electric’s IPO is set to close on Tuesday, August 6. The company’s share price has been set between ₹72 and ₹76 per share, with the total IPO size amounting to ₹6,146 crore. Just before the IPO subscription started on August 1, the company managed to garner ₹2,763 crore from major investors.

This IPO is the largest since the Life Insurance Corporation of India’s IPO in May 2022, stirring quite some excitement within the market.

According to BSE data, Ola Electric received bids for 16,34,52,510 shares out of the available 46,51,59,451 shares on offer. The offer consists of both an offer for sale of shares and a new issue of up to ₹5,500 crore that includes shares from founder Bhavish Aggarwal who plans to sell around 3.8 crore shares.

The company has emerged as a significant player in the electric two-wheeler space in India, holding almost 35% of the market share in E2W registrations in the financial year 2024, as per a report by Redseer.

Market experts are keenly watching the IPO’s performance. Analysts from LKP Securities encourage investors to subscribe with a long-term perspective, citing the potential for growth in the burgeoning EV market despite the company experiencing operating losses.

Many are optimistic about Ola’s future, as the company has already established the Ola Futurefactory, poised to boost production capabilities significantly. The factory is expected to manufacture a million units annually and emphasizes Ola’s commitment to advancing technology and infrastructure in the EV sector.

As it stands, the company is on a trajectory to explore multiple avenues, including electric motorcycles and battery production, expanding its footprint in the electric vehicle domain. Analysts anticipate that the upcoming days will reveal more about the IPO’s overall demand and interest.