Ola Electric IPO Over-Subscribed: Rs 6,145 cr Offer Gets 4.27 Times Subscription

New Delhi, Aug 6 (PTI) The Rs 6,145-crore initial public offer of electric two-wheeler company Ola Electric Mobility received 4.27 times subscription on the final day of bidding on Tuesday.

The initial share sale received bids for 1,98,79,03,905 shares against 46,51,59,451 shares on offer, as per NSE data.

The quota for Qualified Institutional Buyers (QIBs) fetched 5.31 times subscription while the category for Retail Individual Investors (RIIs) got subscribed 3.92 times. The portion for non-institutional investors garnered 2.40 times subscription.

The Initial Public Offering (IPO) has a fresh issue of up to Rs 5,500 crore and an Offer for Sale (OFS) of up to 8,49,41,997 equity shares. The price band for the offer is Rs 72-76 a share.

Under the OFS, Ola Electric founder Bhavish Aggarwal is offloading almost 3.8 crore shares.

For Ola Electric, the IPO will provide the much-needed impetus to invest in enhancing cell manufacturing capacity and research and development on future technologies and products.

According to its prospectus, Ola Electric Mobility Ltd (OEML) plans to utilise Rs 1,227.6 crore out of the proceeds of its Rs 5,500-crore public issue on capacity expansion of its cell manufacturing plant to 6.4 GWh from 5 GWh.

The company is also looking to use Rs 1,600 crore from the fresh fund on research and product development, another Rs 800 crore will be deployed to repay debts and Rs 350 crore for organic growth initiatives.

In its RHP, OEML said the Phase 1 (a) and Phase 1 (b) of the set up and expansion of the Ola Gigafactory at Krishnagiri district in Tamil Nadu will be funded from internal accruals and long-term borrowings availed by its arm Ola Cell Technologies Pvt Ltd (OCT).

The company said a portion of the proceeds will be used for capital expenditure to be incurred by OCT for expansion of the capacity of cell manufacturing plant from 5 GWh to 6.4 GWh.

On Thursday, the company mobilised Rs 2,763 crore from anchor investors, including SBI Mutual Fund (MF), HDFC MF, Nippon India MF, Bharti Axa Life Insurance Company, Kotak Mahindra Life Insurance Company, Nomura India Investment Fund, Goldman Sachs (Singapore) Pte Ltd, and Fidelity.

Kotak Mahindra Capital Company, Citigroup Global Markets India, BofA Securities India, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, SBI Capital Markets, and BOB Capital Markets are the managers to the offer.