Ola Electric IPO: Bhavish Aggarwal-led company raises Rs 2,763 crore from QIPs
Mumbai: Ola Electric, India's largest electric two-wheeler manufacturer, allocated 364 million shares to anchor investors, raising Rs 2,763 crore, media reports said.
The shares were priced at Rs 76 each, the upper limit of its price band. The Rs 6,146 crore IPO, the largest since the Rs 21,000 crore IPO of LIC in May 2022, opens for subscription on Friday and closes on Tuesday.
The anchor allotment attracted over 80 domestic and foreign funds, with Rs 1,117 crore going to domestic mutual funds such as SBI MF, HDFC MF, Nippon MF, and UTI MF. Foreign funds receiving allotments include Templeton Global, Nomura, Amundi, Jupiter Global, and Goldman Sachs, reported Business Standard.
Investment bankers reported that demand for shares in the anchor book exceeded availability.
Anchor allotments, made the day before an IPO opens, provide guidance to other potential investors.
About 60 percent of the shares reserved for institutional investors in the IPO can be allocated through the anchor book.
Backed by Softbank, Ola has set its IPO price band at Rs 72-76 per share. At the upper end, the company will be valued at Rs 33,522 crore ($4 billion) on a post-dilution basis, according to the report.
The IPO includes a fresh issue of shares worth Rs 5,500 crore, intended for debt repayment, expansion of its gigafactory, and research and development.
The Offer for Sale (OFS) portion amounts to Rs 646 crore, with founder Bhavish Aggarwal selling shares worth Rs 288 crore, according to the report.
Other investors, including Tiger Global (Rs 48 crore) and Softbank (Rs 181 crore), are also selling stakes. Alpine Opportunity and Tekne Private are selling smaller quantities at a loss, as their acquisition cost exceeds Rs 111 per share.
Post-IPO, promoter shareholding in Ola will decrease from nearly 45 percent to 36.78 percent, the report said.
The company reported a net loss for FY24 and has been operating at a loss.
Despite the cash burn, Ola improved its free cash flow loss margin to -31 percent in FY24. However, this financial strain has shifted the company from a net cash-positive position in FY22 to net debt in FY24.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
Related Articles
CRR cut, AI ethics push, and SORR benchmark: Experts hail RBI’s pragmatic policy moves
Mumbai: The Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.5% while the cash reserve ratio (CRR) has been slashed by 50 basis points to 4 percent, media reports said.
JP Morgan gives 'overweight' rating to Adani Group bonds
Mumbai: US investment bank JP Morgan has assigned an 'overweight' rating to four bonds issued by the Adani Group, citing the group's capacity to scale and grow through internal cash flows, which reduces the likelihood of credit stress.
LG Electronics files DRPH with SEBI; IPO size expected to be over RS 15,000 cr
Mumbai: South Korean electronics giant LG Electronics has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Friday for the proposed public listing of its Indian business, according to a notification on the Bombay Stock Exchange (BSE).
De-dollarisation not on India's agenda; derisking domestic trade is: RBI Governor Shaktikanta Das
Mumbai: India has not initiated any steps towards de-dollarisation and is solely focused on mitigating risks to domestic trade from geopolitical uncertainties, Reserve Bank of India (RBI) Governor Shaktikanta Das clarified on Friday, media reports said.
Latest News
Operation Sindoor on games field, India wins: PM Modi jibes Pak in congratulatory message for his country
Suryakumar Yadav donates Asia Cup match fees to Armed Forces and Pahalgam terror attack victims' families
US: Michigan church attack leaves four dead, gunman shot down
Narendra Modi congratulates Team India on Asia Cup win over Pakistan, recalls Operation Sindoor
