Ola Electric, a well-known electric scooter company, is set to go public with its Initial Public Offering (IPO) starting tomorrow, August 2, 2024. This is a major event for the company and for those interested in the electric vehicle (EV) sector.
Details of the Ola Electric IPO
- IPO Dates: The subscription for Ola Electric’s IPO will be open from August 2 to August 6, 2024.
- Price Range: Shares are priced between Rs 72 and Rs 76 each.
- Lot Size: Investors need to purchase at least 195 shares, which will cost Rs 14,820.
- Issue Size: Ola Electric aims to raise up to Rs 5,500 crore through this IPO. This amount includes new shares being issued and shares sold by existing investors and promoters.
Before the IPO starts, shares might be traded unofficially in the grey market. The Grey Market Premium (GMP) indicates the difference between the expected listing price and the IPO issue price, helping to gauge demand. Currently, the GMP for Ola Electric is +16, meaning shares are trading at a premium of Rs 16 above the IPO price.
Ola Electric is a major player in India’s EV market, producing electric scooters and their components at its Ola Futurefactory. The company has introduced four new products and has delivered seven so far. As of March 31, 2024, Ola Electric operates more than 431 service centers and 870 experience centers across India.
Shares are allocated to various types of investors in the following way:
- Qualified Institutional Buyers (QIBs): 75% of the shares
- Non-Institutional Investors (NIIs): 15%
- Retail Investors: 10%
The process of allotting shares is expected to be completed on August 7, 2024. Shares will be credited to investors’ demat accounts on the same day, and refunds for those who did not get shares will begin. The shares are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on August 9, 2024.
Deciding whether to invest in the Ola Electric IPO depends on your personal financial goals and risk tolerance. It’s wise to conduct thorough research or consult a financial advisor before making any investment choices.