Ola Electric IPO Day 2 Highlights: Issue fully subscribed, retail investors lead

Issue subscribed 1.06 times on day 2 of bidding.

Category-wise subscription

• Qualified institutional buyers (QIBs): 0.40
• Non-institutional investors (NIIs): 1.11 times
• Retail individual investors (RIIs): 2.87 times
• Employees: 8.98 times

Rеtail invеstors

• Minimum invеstmеnt: ₹14,820 for 195 sharеs
• Maximum i nvеstmеnt: ₹192,660 for 2,535 sharеs

Small and non-institutional invеstors (sNII):

• Minimum lot: 14 lots (2,730 sharеs) for ₹207,480
• Maximum Lot: 67 lots (13,065 sharеs) for ₹992,940

Big and non-institutional invеstors (bNII):

• Minimum Lot: 68 lots (13,260 sharеs) for ₹1,007,760

Since it was established, Ola Electric has significantly broadened its range of products.

• Ola S1 Pro: The initial electric vehicle model was released in December 2021.
• Ola S1 Series: Comprising of the Ola S1, Ola S1 Air, Ola S1 X, and Ola S1 X+.
• New EV Models and Motorcycles like the Diamondhead, Adventure, Roadster, and Cruiser were announced for August 2023.

In the fiscal year 2023, Ola Electric prioritised its export activities, exporting around 75% of its two-wheeler exports to Africa, Latin America, and Southeast Asia. The supply of electric two-wheelers within the company's home market was relatively limited.

As of March 31, 2024, Ola Electric has a workforce of 959 people, consisting of 907 permanent employees and 52 freelancers, focused on research, product development, vehicle design, and software development.

Issue subscribed 73% so far on day 2 of bidding led by retail investors.

Category-wise subscription

• Qualified institutional buyers (QIBs): 0
• Non-institutional investors (NIIs): 84%
• Retail individual investors (RIIs): 2.67 times
• Employees: 8.53 times

Established in 2017, Ola Electric Mobility Ltd is a major player in the electric vehicle (EV) industry. The company specialises in manufacturing electric two-wheelrs and essential components, such as battery packs, motors, and vehicle frames, at its state-of-the-art Ola Futurefactory.

Issue subscribed 66% so far on day 2 of bidding led by retail investors.

Category-wise subscription

• Qualified institutional buyers (QIBs): 0
• Non-institutional investors (NIIs): 70%
• Retail individual investors (RIIs): 2.47 times
• Employees: 8.04 times

The company's initial share sale was mostly subscribed by retail investors, with the portion reserved for them being subscribed 1.57 times.

The issue received bids for 16.31 crore shares against 46.51 crore shares on offer, leading to 35% subscription.

The quota set aside for non-institutional investors was subscribed to 20%. However, the portion reserved for qualified institutional bidders (QIBs) did not see any significant bids.

The initial share sale is a combination of a fresh issuance of shares up to ₹5,500 crore and an offer for sale (OFS) of 8.49 crore shares valued at ₹645.56 crore by promoters, including the company's founder Bhavish Aggarwal, and investors.

The fresh issue proceeds will be used to expand a cell manufacturing plant, research and development, debt repayment, and organic growth initiatives.

Last week, ahead of the IPO, the company mobilised ₹2,763 crore from anchor investors, including SBI Mutual Fund (MF), HDFC MF, Nippon India MF, Bharti Axa Life Insurance Company, Kotak Mahindra Life Insurance Company, Nomura India Investment Fund, Goldman Sachs (Singapore) Pte Ltd and Fidelity.