Ola Electric Mobility IPO Lists Flat At Rs 76
The retail portion and non-institutional investors (NII) portion receives subscription of 3.85 times and 2.39 times respectively
The initial public offering (IPO) of Ola Electric Mobility which opened on 02 August to raise over Rs 6,000 crore debut flat on the bourses. The issue listed at par with its issue price of Rs 76 on the National Stock Exchange (NSE).
The qualified institutional buyer (QIB) portion was the most subscribed portion at 5.31 times. The retail portion and non-institutional investors (NII) portion followed, being subscribed 3.85 times and 2.39 times respectively. The employee portion witnessed a subscription rate of 11.66 times.
The Rs 6,145.56 crore IPO consisted of fresh issues of up to Rs 5,500 crore and an offer-for-sale (OFS) worth Rs 645.56 crore by promoter and investor selling shareholders. The price band for the issue was fixed at Rs 72 to 76 per share.
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 were the book running lead managers and Link Intime India was the registrar to the offer.
IPO Objectives
The proceeds of Rs 5,500 crore from the fresh issue will be utilised towards capital expenditure of its subsidiary, OCT for expansion of the capacity of its cell manufacturing plant.
Additionally the funds will also be used for prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the company and general corporate purposes.
Moreover, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
Firm’s Financials
The firm registered revenue of Rs 5,243 crore in FY24, compared to Rs 2,782 crore in FY23.
However, the firm’s profit after tax (PAT) decreased to Rs 1,584 crore in FY24 compared to Rs 1,472 crore in FY23.
Overall, revenue increased by 88.42 per cent, whereas PAT fell 7.63 per cent.
Notably, the company is running into losses at the operating level itself, though the extent of loss margins are reducing (25.3 per cent in FY24 from 47.6 per cent in FY23).
