A Closer Look
The much-anticipated Ola Electric IPO opened for subscription on August 1, 2024, with unlisted shares trading at a premium in the grey market. The company, India's largest electric two-wheeler manufacturer, is offering a fresh issue of 723,684,210 equity shares worth approximately Rs 5,500 crore and an offer for sale by the promoters and investors, offloading 84,941,997 shares worth Rs 645.56 crore.
The IPO is available at a price band of Rs 72-76 per share with a lot size of 195 shares. The three-day subscription window closes on Tuesday, August 6, 2024.
Several brokerages have recommended subscribing to the Ola Electric IPO with a long-term outlook. Geojit analysts believe the company's strong growth phase, robust R&D, broad product portfolio, and vertically integrated approach justify a "Subscribe" rating for high-risk investors.
LKP Securities also recommends subscribing for the long term, citing the company's position as the only pure-play two-wheeler EV in the rapidly growing Indian EV market. Anand Rathi Research Team agrees, suggesting a "Subscribe – long term" rating based on the company's valuations.
Ola Electric has appointed Link Intime India as the registrar for the public issue, while BofA Securities India, Goldman Sachs (India) Securities Private, Kotak Mahindra Capital Company, Axis Capital, SBI Capital Markets, Citigroup Global Markets India, BoB Capital Markets, and ICICI Securities are the book-running lead managers of the IPO.
The basis of allotment for the Ola Electric IPO shares is likely to take place on Wednesday, August 7, 2024, with shares expected to be credited to demat accounts on Thursday, August 8, 2024. Ola Electric shares are scheduled to make their debut on the BSE and NSE on Friday, August 9, 2024.
Incorporated in 2017, Ola Electric is a pure EV player in India, building vertically integrated technology and manufacturing capabilities for EVs and EV components, including cells. The company's revenue from operations jumped to Rs 5,009.83 crore in FY24 from Rs 2,690.92 crore in FY23. However, its EBITDA dropped to Rs 1,040.19 crore from Rs 1,197.09 crore in FY23, and its loss widened to Rs 1,584.44 crore in FY24.