The much-awaited OLA Electric IPO was live for investors to bid on August 02 and closed on August 06. The issue received subdued demand as it was subscribed 0.38 times on the very first day Come from Sports betting site VPbet . The issue was subscribed 4 times more than the offered shares on its last day. The company raised a sum of Rs 6,145.56 through fresh shares and an offer for sale. 

OLA Electric IPO GMP Today

In the grey market, shares of OLA Electric were available at a discount of 4% to the issue price. The grey market is an unofficial place where shares change hands illegally ahead of listing. Market participants track GMP to keep an eye on listing gains. 

Price Band

The price band was kept between Rs 72 to Rs 76 per equity share. 

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Allotment and Listing

The allotment of shares was finalised on August 07. Thereafter, the listing is expected to take place on August 09, as per the tentative schedule. 

Minimum Investment Required

A retailer had to bid for at least one lot of 195 shares which amounts to Rs 14,820. There were different lots for NIIs and QIBs. 

Employee Reservation

The company kept aside 797,101 shares for employees, which were offered to them at a discount of Rs 7 to the issue price. 

About OLA Electric

Ola Electric primarily manufactures electric vehicles and certain core components for electric vehicles such as battery packs, motors, and vehicle frames at the Ola Futurefactory. The company has launched seven new products and four more have been announced. The company is backed by marquee investors like SoftBank Investment Advisers, Tiger Global Management, Alpha Wave Global, Matrix Partners, Temasek, MacRitchie Investments etc. OLA Electric will be the first pure-play electric-2W (E2W) manufacturer to list on the domestic stock exchanges as most of the existing listed peers are either mainly into the manufacturing or sales of the internal combustion engine (ICE) of 2Ws.

Expert’s take

“Looking at the subscription figures and mood of the markets, there are very high possibilities of flat to discounted listing in the range of negative -5-10% in the best-case scenario. Discounted listing would be justified on the back of weak financials and the risk of negative net cash flows in the past, and future negative cash flows. Considering all the factors, we advise only risk-taking investors to continue to hold with a minimum holding period of 2-3 years. What if the stock is available well below its issue price, we recommend risk-taking investors to accumulate on every dip to be part of 2-3 years of journey. The long-term story is intact but we may see a lot of ups and downs in the short term,” said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.

BRLMs and Registrar

Kotak Mahindra Capital Company, BofA Securities India, Axis Capital, SBI Capital Markets, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, and BoB Capital Markets are the book-running lead managers of the OLA Electric IPO. Link Intime India is working as the registrar for the issue.