The company has priced its IPO between INR 72 and INR 76 per share, leading to a valuation of about INR 33,500 crore (around USD 4 billion) at the higher end of the offering.
As of 4:57 pm on Monday evening, the retail portion of the offering was subscribed nearly three times. The non-institutional investor portion was also slightly oversubscribed at 1.11 times the number of shares offered.
The shares reserved for employees saw the steepest oversubscription, at nearly nine times. Qualified institutional buyers (QIBs) trailed all other subscription categories with a 40% subscription.
The offer had been subscribed 35% on the first day of bidding on Friday. The retail portion was oversubscribed 1.57 times on debut day, while the non-institutional investor category was subscribed 20%.
Prior to that, Ola Electric raised INR 2,763 crore from anchor investors like Nomura India Investment Fund, State Bank of India Mutual Fund, HDFC Mutual Fund, and Goldman Sachs, among others on August 1.
Ola Electric’s public offering is one of the largest in the country this year, comprising a fresh issue of INR 5,500 crore and an offer-for-sale (OFS) of 8.4 crore shares. Founder Bhavish Aggarwal and early investors like Alpha Wave, Alpine, DIG Investment and Matrix Partners, among others, will be selling shares under the OFS.
The firm had to trim its valuation by roughly a fourth from its last private funding round for the public offering. Aggarwal said the IPO was priced “attractively” so that “we get the whole Indian investor community along on this journey”.
Ola Electric’s operating revenue rose 90% to INR 5,009 crore in FY24, while losses widened to INR 1,584 crore in FY24, from INR 1,472 crore in the previous year. Hence, it will be valued at a market cap-to-sales ratio of about 6.6 times, with a market cap of just over INR 33,500 crore.
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