• Source:JND
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Ola Electric IPO subscription Status:  The Rs 6,145 crore initial public offering (IPO) of electric two-wheeler company Ola Electric Mobility was fully subscribed on the second day of bidding on Monday, with strong demand from retail investors and non-institutional investors.

According to data from the National Stock Exchange (NSE), bids for 49,43,63,610 shares were received against 46,51,59,451 shares on offer in the initial share sale, which translates to 1.06 times subscription.

Retail individual investors (RIIs) received 2.87 times the subscription, while the quota for non-institutional investors received 1.11 times the subscription. Qualified institutional buyers (QIBs) accounted for 40 percent of the subscriptions in the segment.

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The IPO consists of 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 issue is Rs 72-76 per share. The issue closes for subscription on August 6. Ola Electric founder Bhavish Agarwal is offloading about 38 million shares under the OFS.

The IPO will provide a much-needed impetus for Ola Electric to expand its cell manufacturing capacity and invest in research and development on future technologies and products.
According to its prospectus, Ola Electric Mobility Ltd (OEML) plans to use Rs 1,227.6 crore from the Rs 5,500 crore public issue to expand the capacity of its cell generation plant from 5 GWh to 6.4 GWh.

The company wants to use Rs 1,600 crore of the fresh funds for research and product development, another Rs 800 crore for debt repayment, and Rs 350 crore for organic growth initiatives.

In its RHP, OEML said that Phase 1 (a) and Phase 1 (b) of setting up and expanding of Ola Gigafactory in the Krishnagiri district of Tamil Nadu would be funded from internal accruals and long-term debt obtained by its arm Ola Cell Technologies Pvt Ltd (OCT).

A portion of the proceeds will be used to finance capital expenditures by OCT to expand cell generation plant capacity from 5 GWh to 6.4 GWh, the company said.

The company on Thursday raised 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) Pvt Ltd and Fidelity.

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(With PTI's Input)

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