India's largest electric two-wheeler maker Ola Electric Mobility Ltd opened the subscription for its initial public offering (IPO) on Friday and the issue was subscribed 0.35 times on the first day. A total of 16.3 crore bids were received for 46.5 crore shares offered.
The portion reserved for qualified institutional buyers got 1.4 lakh bids, against 25.2 crore shares offered. The non-institutional investor part was subscribed 20% with 2.6 crore bids for 12.7 crore shares offered.
However, the portion set aside for retail investors was subscribed 1.57 times with 13.3 crore bids for 8.5 crore shares. The employee portion was subscribed 4.88 times with 41.3 lakh bids for 8.5 lakh shares.
The issue will close on Thursday, August 6. On Thursday, Ola Electric raised Rs 2,763 crore from anchor investors. It allotted 36.36 lakh equity shares to over 80 domestic and foreign funds at Rs 76 apiece.
The automaker has set a price range of Rs 72 to Rs 76 per share for the IPO. At the upper end of the price band, the automaker is eyeing Rs 6,145.56 crore issue, which includes Rs 5,500 crore from the fresh issue of shares and Rs 645.56 crore from the offer for sale.
Bhavish Aggarwal-led Ola Electric is the first pure electric vehicle maker to go public in India and the first by an automaker here in the last 20 years. Ola Electric is the market leader in the electric two-wheeler segment with over 35% market share, competing with Bajaj Auto, TVS Motor, Ather and Hero MotoCorp.
The company plans to use Rs 1,226.43 crore from its net proceeds of the IPO for cell manufacturing at its upcoming Giga factory in Krishnagiri, Tamil Nadu. The company will also use Rs 1,600 crore for research and product development, and Rs 800 crore for debt repayment.
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