Ola Electric IPO day 1: GMP, price, date, subscription status, other details. Apply or not?

Ola Electric IPO: The initial public offering of Ola Electric Mobility Limited has hit the Indian primary market today. As per the Ola Electric IPO subscription date, the public issue will remain available for bidding until 6th August 2024. The electric vehicle company has fixed the Ola Electric IPO price band at ₹72 to ₹76 per equity share. Ola Electric's IPO is proposed for listing on BSE and NSE, and the mainboard IPO aims to raise ₹6,145.56 crore from this initial offer. Out of ₹6,145056 crore, the company aims to raise ₹5,500 crore by issuing fresh shares, while the rest, ₹645.56 crore, is reserved for the Offer for Sale (OFS) route.

Meanwhile, ahead of the Ola Electric IPO's opening date, shares of the electric vehicle company are available for trade in the grey market. According to stock market observers, Ola Electric's share price is quoting at a premium of ₹17 in the grey market today. This means Ola Electric IPO GMP (grey market premium) today is ₹17.

Ola Electric IPO subscription status

By 2:06 PM on day one of bidding, the public issue had been booked 0.27 times, the retail portion of the book build issue had been filled 1.26 times, and the NII segment had been subscribed 0.13 times.

Important Ola Electric IPO details

1] Ola Electric IPO GMP today: Market observers say shares of Ola Electric Mobility Limited are available at a premium of ₹17 in the grey market today.

2] Ola Electric IPO price: The electric vehicle company's public issue price range is ₹72 to ₹76 per equity share.

3] Ola Electric IPO date: The public issue opened today and will remain open until 6 August 2024, i.e., until Tuesday next week.

4] Ola Electric IPO size: The mainboard IPO aims to raise ₹6,145.56 crore from this initial offer. Out of ₹6,145056 crore, the company aims to raise ₹5,500 crore by issuing fresh shares, while the rest, ₹645.56 crore, is reserved for the OFS route.

5] Ola Electric IPO lot size: A bidder can apply for this public issue in lots, and one lot of the Ola Electric IPO comprises 195 company shares.

6] Ola Electric IPO allotment date: The tentative date for share allocation is 7th August 2024.

7] Ola Electric IPO registrar: Link Intime India Private Limited has been appointed as the official registrar of the book build issue.

8] Ola Electric IPO listing: The IPO is proposed for listing on BSE and NSE.

9] Ola Electric IPO listing date: Due to the 'T+3' listing rule, the public issue will likely be listed on Friday, August 13th, 2024.

Ola Electric IPO listing: Apply or not?

10] Ola Electric IPO review: Giving a 'subscribe' tag to the book build issue, Tapan Doshi, SEBI Registered Research Analyst and Founder of Thoughtful Investors Hub, said, "Ola Electric has formally confirmed that its electric vehicle sales reached almost 33,0,000 in FY24 which is equal to 35% of market share leaving the listed counterparts behind. The firm's market value over revenue is also 6.7 times higher than its rival firms. However, Ola Electric still experiences many challenges, such as a higher employee attrition rate of 44.25%, a continued loss-making situation and a lack of cash flow (negative). With little experience in manufacturing EVs, it does not know what will happen regarding profit margins. Government grants are important in Ola Electric's operations, and intensive R&D investments do not have promising returns. Moreover, the firm could face supply risks due to its raw materials coming from China. Nevertheless, with the growing demand for EVs, there are huge opportunities available for Ola Electric. When it comes to Ola Electric's profitability, nobody knows when this will happen, so only people with a high risk-taking appetite can subscribe to it as investors in the hope for long-term returns."

Advising the primary market investors to apply for the public issue, Tarun Singh, MD at Highbrow Securities, said, "What makes Ola Electric's IPO particularly promising is its dual-focus on market expansion and participation in the government's Production-Linked Incentive (PLI) scheme for both scooters and battery businesses. The PLI scheme is crucial as it helps offset some operational costs, giving the company an edge in a highly competitive market. Moreover, Ola Electric has identified key international automotive markets, including Asia, LATAM, and Africa, as fertile ground for its offerings. This global footprint can unlock enormous revenue streams in the long term, giving investors a tantalising glimpse into the company's future profitability."

Among leading brokerages, Anand Rathi and BP Equities gave the book build issue a 'subscribe' tag. In contrast, Ashika Capital, Axis Capital, HDFC Securities, SBI Securities, and InCred Equities have not rated it.

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.