Ola Electric IPO GMP : In the gray markets, the unlisted shares of the eagerly expected Ola Electric IPO, which begins for subscription, are being offered at a premium. At the moment, Ola Electric shares are fetching a grey market premium (GMP) of about Rs 13–15 per share, indicating a potential premium of 17–20% if current trends continue.
Prior to its opening on August 1, the largest electric two-wheeler (e2W) maker in India received Rs 2,763.03 crore from anchor investors. On Tuesday, August 6, 2024, the three-day subscription period for the Ola Electric IPO comes to an end. The IPO has a lot size of 195 shares and is priced between Rs 72 and Rs 76 per share.
Ola Electric is launching a new issue of 723,684,210 equity shares, valued at over Rs 5,500 crore, along with an offer for investors and promoters to purchase 84,941,997 shares, valued at Rs 645.56 crore.
Brokerages on Ola Electric IPO
Brokerages including Geojit, LKP Securities, and the Anand Rathi Research Team have given their perspectives on the Ola Electric IPO as it becomes available for public subscription.
With a long-term perspective, Geojit has advised investors to subscribe to the Ola Electric IPO. Analysts at Geojit believe OEML’s EV/sales ratio of 7.2x (FY24) is costly at the upper price range of Rs 76. Nonetheless, the company, which leads the E2W market, is seeing rapid expansion because to its outstanding R&D, wide range of products, and vertically integrated strategy. For high-risk investors with a long-term perspective, we propose a Subscribe rating despite current profitability issues and valuation worries,” the brokerage stated.
Additionally, LKP Securities analysts advised investors to subscribe for a long-term outlook, stating, “We believe Ola will ride the tide as the only pure-play two-wheeler EV, based on the narrative of EV proliferation in the country (current EV scooter penetration at 15%).” Therefore, we advise long-term subscribers to this IPO to exercise caution regarding demand and Ola’s reduction in losses.”
Ola Electric IPO key details
Link Intime India has been designated by Ola Electric as the registrar for the public offering. The book-running lead managers of the IPO are 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.
On Wednesday, August 7, 2024, the Ola Electric IPO shares are anticipated to be allotted. On Thursday, August 8, 2024, the company’s shares are anticipated to be credited to demat accounts. On Friday, August 9, 2024, Ola Electric shares are expected to launch on the BSE and NSE.
About Ola Electric Mobility Limited
Ola Electric, which was founded on February 3, 2017, is a leading participant in the Indian EV market. It is developing vertically integrated manufacturing and technical capabilities for EVs and its component parts, such as cells.
Ola Electric recorded operating revenue of Rs 2,690.92 crore in FY23, but that revenue increased to Rs 5,009.83 crore in FY24. The company’s reported EBITDA for FY24 was Rs 1,040.19 crore, down from Rs 1,197.09 crore in FY23. According to the RHP documents, Ola Electric’s loss increased to Rs 1,584.44 crore in FY24.
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