Ola Electric IPO subscribed 16% so far on first day of bidding process. Check GMP and other details
Ola Electric was 16% subscribed in the first two hours on the first day of the bidding process on Friday.
At 11.27 a.m., the public issue was subscribed 0.16 times, led by retail investors, whose category was subscribed 77%. The non-institutional investor (NII) category was subscribed 7%, while there were no bids from qualified institutional buyers. The employee reserve portion was subscribed 2.82 times.
According to market analysts, the current GMP of Ola Electric is Rs 12-13 (16%) in the unlisted market.
The IPO comprises a fresh issue of Rs 5,500 crore and an offer for sale (OFS) of 8.4 crore shares. Under the OFS, founder Bhavish Aggarwal will offload 37.9 million shares in the IPO, the documents disclosed. The firm’s investors Alpha Wave, Alpine, DIG Investment, Matrix, and others will also be selling 47.89 million shares.
Ahead of the issue opening, the company has raised just over Rs 2,700 crore from anchor investors including Nomura, HDFC Mutual Fund, SBI Mutual Fund and various others.
Ola Electric IPO review
Most analysts are bullish on the IPO as Ola is the market leader in the domestic electric two-wheeler industry, making it reap benefits of any positive developments in the sector.
«Based on the narrative of EV proliferation in the country (current EV scooter penetration at 15%), we believe Ola to run the tide being the only pure play 2W EV. Therefore, keeping an eye and a cautious view on the demand and thereby the reduction in losses for Ola, we recommend Subscribing this IPO with a long-term
