“Based on the grey market premiums, we see that the Ola Electric share might list at a discount of 4-5%,” said Saji John, senior research analyst at Geojit Financial Services.
The INR 6,145.56-crore initial public offering (IPO) of the electric two-wheeler maker, the largest in 2024 so far, was priced between INR 72 and INR 76 apiece. The grey market prices indicate the stock could trade at around INR 73 on the listing day. Analysts said Ola shares were trading at a premium in the grey market before the IPO, but have since slipped into a discount. The issue was subscribed 4.27 times.
“We think that the GMP (grey market premium) is currently negative INR 2 (discount) just because the HNIs have subscribed less than the numbers seen historically, which means they would be getting more shares than they bargained for, leading to a willingness to sell on discount,” said Arun Kejriwal, founder, KRIS, a Mumbai-based investment consultancy firm.
Some analysts are recommending investors to sell on listing. “We have not recommended the IPO of Ola Electric to our clients and would suggest allottees to sell on listing,” said Geetanjali Kedia, an IPO expert at SPTulsian Investment Advisers.
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