Ola Electric Mobility Stock Lists at Rs 76 on NSE

- Ola Electric Mobility Ltd has announced a price band of Rs 72-76 per share for its upcoming IPO, set to open for subscription on August 2. - The IPO includes a fresh issue of Rs 5500 crore and an offer for sale of up to 84.94 million shares, with the total issue size reaching Rs 6145.96 crore. - Promoters Bhavish Aggarwal and Indus Trust will be selling 3.79 crore and 41.79 lakh equity shares respectively in the offer for sale. - The largest shareholder, SVF II Ostrich (DE) LLC, will offload 2.38 crore shares, reducing its stake from 21.98 percent. - The anchor investor bidding will commence on August 1, with the issue closing on August 6, valuing the company at around Rs 33500 crore. Source: Moneycontrol

- The public offering of Ola Electric was oversubscribed by 4.3 times on Tuesday, August 6, the final day of the issue. The company is raising Rs 6,145 crore ($732 million). - There was high interest from existing employees, who subscribed to the issue 11.7 times. However, the component reserved for them is the smallest at 0.84 million shares, which comes to about Rs 6 crore. - Institutional investors, for whom 75% of the issue was reserved, bid 5.3 times the allotted amount. The segment for non-institutional investors, like corporates and wealthy individuals, saw a subscription rate of over 2.39 times. - Retail participation was relatively strong at 3.86 times. - Ola Electric’s IPO involves a primary capital raise of Rs 5,500 crore and an offer for sale of Rs 645 crore. Early backers such as Tiger Global, Matrix Partners, and SoftBank are selling their shares in the secondary sale, besides founder Bhavish Aggarwal. Source: The Arc - https://thearcweb.com/article/ola-electric-ipo-subscribed-bhavish-aggarwal-ev-86C0N6fuifKQ2LEu

Any insight into what the price band would be?

Soneone explain rationale here !

- Ola Electric's operating revenues surged by 93% to Rs 5,010 crore ($603 million) in FY24, while net loss increased marginally by 6% to Rs 1,478 crore ($178 million). - The company is targeting a valuation of $4.25 billion to $4.5 billion for its IPO, a significant drop from its last private-market valuation of $5.4 billion. - IPO filings reveal a reduction in the secondary component by 10%, with founder Bhavish Aggarwal cutting his share sale from 47.4 million to 37.9 million shares. - Key cost items like R&D, employee expenses, and advertising have been kept in check, with R&D expenses down by 25% and employee benefits up by just 3%. - Ola Electric sold 329,000 vehicles in FY24, achieving 115% growth and maintaining a 45-50% market share in electric two-wheeler sales. Source: The Arc

This guy gets a lot of shit on linkedin, don’t know him personally so not sure if rightly so or not. People in Ola, how’s this whole make tech in india thing working out?

How did it happen? I researched well before the IPO and everyone was against Ola’s IPO referencing their losses and weak financials. As a result didn’t apply and still regret and think who are those investors giving damn valuations to Ola electric? Like it has grown 70%+ since inception of IPO and everyday I see it reached 20% upper circuit. On one side people are ranting Bhavesh and Ola while on the other hand they are aggressively purchasing Ola shares. What do you think about it? Is it a bubble or a missed opportunity?

- Ola Electric, known for its e-scooters, has set a price band of Rs 72-76 per share for its IPO, translating to a market cap of $3.8-4 billion, which is 25% lower than its 2023 valuation of $5.4 billion. This drop means late-stage investors are likely to incur losses. - The IPO aims to raise up to Rs 6,146 crore ($734 million), with Rs 5,500 crore ($657 million) from primary capital and Rs 646 crore ($67 million) from secondary share sales. Founder Bhavish Aggarwal will sell the most units, making Rs 303-320 crore ($36-38 million), while the promoter group will retain about 37% control post-issue. - Anchor investors are expected to subscribe to about 50% of the IPO on August 1, with significant interest from domestic investors like SBI and HDFC mutual funds, and global investors like Fidelity. The valuation was adjusted to $4 billion to attract domestic mutual-fund houses. - Ola Electric's cap-table includes venture capital firms like Matrix Partners (now Z47), growth tech backers like SoftBank Vision Fund, and state investment firms like Temasek. Strategic investors include Hyundai, Pawan Munjal of Hero MotoCorp, and former Vodafone CEO Arun Sarin. - The IPO will impact various stakeholders differently: Tiger Global Management, Z47, and RNT Capital are set to see significant returns, while Temasek and crossover firms like Alpine and Tekne Capital may face losses due to the reduced valuation. Source: Moneycontrol

- Ola Electric, led by Bhavish Aggarwal and backed by Softbank, is preparing to launch its IPO in the first half of August. - This IPO will be the first by an Indian EV two-wheeler maker, marking a significant milestone for India's auto sector. - The company aims to raise around $740 million through a mix of fresh issue and offer for sale. - The targeted post-money valuation is between $4-4.25 billion, providing a lucrative opportunity for investors. - This move could encourage other EV companies like Ather Energy to explore similar value unlocking strategies. Source: Moneycontrol