Ola Electric’s IPO Sees Huge Success with 4.26 Times Subscription
New Delhi [India], August 6: The Initial Public Offering (IPO) of Ola Electric Mobility Limited was subscribed 4.26 times on the final day of bidding. The Rs 6,145.56 crore issue received bids for 1,98,14,05,530 shares against the offered 46,51,59,451 equity shares, at a price band of Rs 72-76.
The Qualified Institutional Buyer (QIB) portion was the most heavily subscribed at 5.31 times. The Retail Portion and Non-Institutional Investors (NII) Portion followed, being subscribed 3.85 times and 2.39 times respectively. The Employee Portion witnessed a remarkable subscription rate of 11.66 times.
The book running lead managers for the IPO were Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, BofA Securities India Limited, Goldman Sachs (India) Securities Private Limited, Axis Capital Limited, ICICI Securities Limited, SBI Capital Markets Limited, and BOB Capital Markets Limited. Link Intime India Private Limited served as the registrar to the offer.
The equity shares are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
About Ola Electric
Ola Electric manufactures electric vehicles (EVs) and core EV components like battery packs, motors, and vehicle frames at its Ola Futurefactory. The company’s primary focus is to capitalize on the electrification of mobility in India, with plans to export its EVs to select international markets in the future.
The company commenced the delivery of its first EV model, the Ola S1 Pro, in December 2021, followed by the Ola S1 in September 2022, the Ola S1 Air in August 2023, and the Ola S1 X+ in December 2023. Within nine months of delivering its first EV scooter in December 2021, Ola Electric became the best-selling electric two-wheeler (E2W) brand in India in terms of monthly E2W registrations on the VAHAN Portal of the Ministry of Road Transport and Highways.
The current EV scooter Generation 2 platform forms the base for the Ola S1 scooter models – Ola S1 Pro, Ola S1 Air, Ola S1 X+, Ola S1 X (2 kWh), and Ola S1 X (3 kWh). Ola plans to replicate this platform approach for its recently announced motorcycle range, which includes four models – Diamondhead, Adventure, Roadster, and Cruiser.
Ola has established a Futurefactory, a Gigafactory, and a Battery Innovation Centre in Bengaluru. Additionally, it is in the process of building its EV hub in the Krishnagiri and Dharmapuri districts of Tamil Nadu.
Doubts Revealed
IPO -: IPO stands for Initial Public Offering. It is when a company sells its shares to the public for the first time to raise money.
Subscription -: Subscription in this context means how many times people wanted to buy the shares compared to how many shares were available. If it is 4.26 times, it means people wanted to buy 4.26 times more shares than were available.
Rs 6,145.56 crore -: Rs 6,145.56 crore is a way to say 61,455.6 million rupees. In India, a crore is equal to 10 million.
Qualified Institutional Buyer -: Qualified Institutional Buyers are big investors like banks or mutual funds that have a lot of money to invest.
Retail Portion -: Retail Portion refers to the part of the shares that are available for regular people to buy, not big investors.
Non-Institutional Investors -: Non-Institutional Investors are people or groups that invest money but are not as big as Qualified Institutional Buyers.
Employee Portion -: Employee Portion is the part of the shares that are reserved for the employees of the company.
EVs -: EVs stands for Electric Vehicles. These are vehicles that run on electricity instead of petrol or diesel.
Ola S1 Pro -: Ola S1 Pro is a model of an electric scooter made by Ola Electric. It is known for being eco-friendly and efficient.
International markets -: International markets mean selling products in other countries outside of India.
