Ola Electric IPO GMP signals 16% upside ahead of subscription
grey market premium (GMP) for the company’s shares is currently pegged at Rs 12-13, indicating a potential premium of 16% above the issue price.
The price band for the IPO has been fixed at Rs 72-76 a share.
The IPO — the first by an electric vehicle manufacturer — comprises a fresh issue of Rs 5,500 crore and an offer for sale of 8.49 crore shares. Bids can be made for a minimum of 197 shares and multiples thereafter.
«I wanted to make sure we price it attractively for the entire investor community in India and in the private rounds, whatever the valuations are, it was very important for us and for me personally, to make sure that we get the whole Indian investor community along on this journey,» said Ola's founder, Bhavish Aggarwal on the sidelines of a press meet on Monday to announce the IPO. «We wanted to make sure we appeal to the widest spectrum of investors we can and hence in our judgement felt this is the right price and the response has been very encouraging.»
The company aims to use the proceeds from the fresh issue for funding working capital expenditure of arm OCT, Rs 800 crore for repayment of the subsidiary's debt, Rs 1,600 crore as an investment in research and product development, and Rs 350 crore for organic growth initiatives and general corporate expenses.
Incorporated on February 3, 2017, Ola Electric is a pure EV player in India and is building vertically integrated technology and manufacturing capabilities for EVs and EV components, including cells. The company manufactures EVs and
