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- Ola Electric Mobility Limited IPO Price Band; GMP, Listing Date And Lot Size Details
Mumbai2 days ago
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More than 2000 scooters are manufactured every day in the Ola Electric factory.
Ola Electric Mobility’s Initial Public Offer i.e. IPO has opened today. Investors will be able to bid for it till August 6. The company’s shares will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on August 9. With this, it will become the first listed electric two-wheeler company.
Through this issue, the company wants to raise ₹6,145.56 crores. For this, the company is issuing 723,684,210 fresh shares worth ₹5,500 crores. Whereas, the existing investors of the company are selling 84,941,997 shares worth ₹645.56 crores through Offer for Sale i.e. OFS.
How much minimum and maximum money can investors invest?
Ola Electric has fixed the price band of its IPO at ₹72-₹76. Retail investors can bid for a minimum of one lot i.e. 195 shares. If you apply for 1 lot as per the upper price band of the IPO of ₹76, then you will have to invest ₹14,820 for it.
At the same time, retail investors can apply for a maximum of 13 lots i.e. 2535 shares. For this, investors will have to invest ₹ 192,660 according to the upper price band.
10% of the issue is reserved for retail investors
The company has reserved 75% of the issue for qualified institutional buyers (QIB). Apart from this, about 10% is reserved for retail investors and the remaining 15% is reserved for non-institutional investors (NII).
Premium in grey market 21.05%
Before listing, the company’s stock has reached a premium of 21.05% i.e. ₹ 16 per share in the grey market. In such a situation, according to the upper price band of ₹ 76, its listing can happen at ₹ 92. However, this can only be estimated, the price of the listing of the stock is different from the price of the grey market.
Last month, SEBI gave approval to Ola Electric to launch IPO
The Securities Exchange Board of India (SEBI) last month approved Ola Electric to launch an IPO. Ola is India’s largest electric two-wheeler manufacturer. The Bengaluru-based company filed a draft red herring prospectus (DRHP) for the IPO with SEBI on December 22, 2023.
DRHP is a document that contains essential information about the company planning an IPO. It is filed with SEBI. It contains important information about the company’s finances, its promoters, risks of investing in the company, reasons for raising funds, how the funds will be used, among other things.
Ola Electric Mobility was founded in 2017
Bengaluru-based Ola Electric Mobility was founded in 2017. The company mainly manufactures electric vehicles, battery packs, motors and vehicle frames at the Ola Future Factory. As of March 31, 2024, the company had 959 employees (907 permanent and 52 freelancers).
What is IPO?
When a company issues its shares to the general public for the first time, it is called Initial Public Offering or IPO. The company needs money to expand its business. In such a situation, instead of taking a loan from the market, the company raises money by selling some shares to the public or by issuing new shares. For this, the company brings IPO.
