Ola Electric IPO: Issue subscribed 35%, retail portion at 157% on Day 1.

Synopsis

Ola Electric's IPO saw 27% so far on the first day, driven by retail investors. With a fresh issue of Rs 5,500 crore, founder Bhavish Aggarwal will sell 37.9 million shares. Analysts are positive about the IPO due to Ola's market leadership in electric two-wheelers in India. The price band is set between Rs 72-76 per share.

The initial public offering (IPO) of Ola Electric has been subscribed 35% on the first day of the bidding process. The retail portion was over subscribed to 1.57 times (157%) receiving over 13.31 crore consolidated share bids against 8,48,06,699 equity shares on offer. The non- institutional investor (NII) category was subscribed 20%, while just 1,44,690 share bids were received for the qualified institutional buyers (QIB) category against a quota of 25,22,96,550 shares.

According to market analysts, the current GMP of Ola Electric is Rs 12-13 (16%) in the unlisted market.

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 perspective," said analysts at LKP Securities.

"Ola has significant headroom to grow in coming years led by favourable the higher capacity utilization of Ola Future Factory on yearly basis," said Anand Rathi while recommending a subscribe.

Made with AI ✨

свернуть