Ola Electric IPO Day 3 Live Updates: Ola IPO GMP trends downwards ahead of third day of bidding; issue booked 1.06x
₹6,145-crore initial public offer of electric two-wheeler company Ola Electric Mobility was completely subscribed on the second day of bidding on Monday.The initial share sale received bids for 49,43,85,840 shares, as against 46,51,59,451 shares on offer, translating into 1.06 times subscription, according to the BSE data.While the quota for non-institutional investors was subscribed 1.11 times, the category for Retail Individual Investors (RIIs) received 2.87 times as many subscriptions. Qualified Institutional Buyers (QIBs) received a 40% subscription, and the employee portion was booked 8.98 times.
On Friday, August 2, the first day of the bidding process, 35% of the ₹6,145 crore initial share offer of electric two-wheeler company Ola Electric Mobility was subscribed, indicating a lackluster level of investor interest.The IPO consists of an offer for sale (OFS) of 8.49 crore equity shares valued at ₹645.56 crore at the higher end of the price range by investors and promoters, in addition to a new issue of equity shares up to ₹5,500 crore. Under the OFS, Ola Electric's founder, Bhavish Aggarwal, will sell around 3.8 crore shares.“Looking at the subscription figures on day 2, the Ola Electric IPO offer is feeling the heat of risk of underperforming, which can be attributed towards market conditions.
As per my readings, I believe subscription demand would be below the company's expectations. Along with the market scenario, very weak financials and negative cash flow for the last 3 years are also a concern for new investors.
If investors still wish to take risks, one should consider these factors before investing and have a 2-3 year investment strategy," said Tapse. Ola Electric Mobility IPO GMP today or grey market
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