Ola Electric IPO opens tomorrow: GMP, issue details, 10 key things to know

Ola Electric IPO opens for subscription on tomorrow (Friday, August 2). The company is a pure electric vehicle (EV) player in India, producing EVs and their components and building vertically integrated manufacturing and technological capabilities. EVs and a few key EV components are manufactured in the Ola Futurefactory. They have not only announced four new products, but have also delivered seven. As of March 31, 2024, they operated an omnichannel, direct-to-customer distribution network over 431 service centres and 870 experience centres throughout India.

The company's EV hub, which is being built in Tamil Nadu, India, includes co-located suppliers, the Ola Futurefactory for EV manufacture, and the Ola Gigafactory for cell manufacturing.

Although Ola is building an electric vehicle hub in the districts of Krishnagiri and Dharmapuri in Tamil Nadu, it already has a battery innovation center, Gigafactory, and Futurefactory in Bengaluru.

The listed peers of the firm include Hero MotoCorp (P/E of 28.89), Bajaj Auto (P/E of 34.02), Eicher Motors (P/E of 33.58), and TVS Motors (P/E of 68.99).

Revenue at Ola Electric Mobility Ltd. increased by 88.42%, but profit after tax (PAT) fell by -7.63% between March 31, 2024, and March 31, 2023.

Here are the 10 key things to know about Ola Electric Mobility IPO:

Ola Electric IPO date: The issue opens for subscription on Friday, August 2, and closes on Tuesday, August 6.

Ola Electric IPO price band: The issue's price band has been fixed in the range of ₹72 to ₹76 per equity share of face value of ₹10.

Ola Electric IPO lot size: The issue's lot size is 195 equity shares and in multiples of 195 equity shares thereafter.

Anchor investors: The allocation to anchor investors for Ola Electric Mobility IPO is scheduled to take place today (Thursday, August 1).

Ola Electric IPO details: In addition to a fresh issuance of equity shares up to ₹5,500 crore, the Ola Electric IPO comprises an offer for sale (OFS) of 8.49 crore equity shares by investors and promoters. Under the OFS, Ola Electric's founder, Bhavish Aggarwal, will sell around 3.8 crore shares.

Ola Electric IPO objective: The business plans to pay down debt accumulated by its subsidiary, OET; support expenditures for organic growth efforts; engage in research and product development; and use the net proceeds for general corporate reasons. Its subsidiary OCT will have to spend capital money to increase the plant's capacity from 5 GWh to 6.4 GWh, which is categorised as phase 2 of the expansion plan.

Ola Electric IPO listing date and allotment details: On Wednesday, August 7, the Ola Electric IPO basis for share allocation is anticipated to be finalised. The shares will be deposited to the allottees' demat accounts on the same day as the refund, which is scheduled to start on Thursday, August 8. Ola Electric share price is likely to be listed on BSE and NSE on Friday, August 9.

Ola Electric IPO reservation: The Ola Electric IPOhas set aside 75% of its shares for qualified institutional buyers (QIB), 15% for non-institutional institutional investors (NII), and 10% for retail investors.

Lead Manager and Registrar of Ola Electric IPO: The OLA Electric IPO's book running lead managers are Bob Capital Markets Ltd., Goldman Sachs (India) Securities Private Ltd., ICICI Securities Ltd., Axis Capital Ltd., Bofa Securities India Ltd., SBI Capital Markets Ltd., and Kotak Mahindra Capital Company Ltd. Link Intime India Private Ltd. is the registrar for this issue.

Ola Electric IPO GMP today: Ola Electric Mobility IPO GMP today or grey market premium is +16. This indicates Ola Electric share price were trading at a premium of ₹16 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Ola Electric share price was indicated at ₹92 apiece, which is 21.05% higher than the IPO price of ₹76.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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