Ola Electric IPO opens tomorrow. Here's what GMP signals ahead of issue launch
Ola Electric, the biggest of this year, will open for subscription on Friday. Ahead of the listing, the company's shares are trading with a premium of Rs 15 in the unlisted market.
Considering the upper price band, the stock is boasting a premium of 20% to the issue price. The IPO is priced in the range of Rs 72-76 per share.
The IPO — the first by an Indian electric vehicle manufacturer — comprises a fresh issue of Rs 5,500 crore and an offer for sale of 8.49 crore shares.
The company has lowered the pricing for the public offer to attract more investors. At the upper end of the price band, the post-issue market valuation comes to around Rs 33,522 crore.
Bids can be made for 195 shares in one lot and in multiples thereafter.
In the public offer, about 75% is reserved for qualified institutional buyers (QIBs), 10% for retail investors, and the rest 15% for non-institutional investors.
The company aims to use the proceeds from the fresh issue for funding the 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 in early 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 certain core EV components like battery packs, motors, and vehicle frames at the Ola
