Foreign and local investors have shown keen interest in participating in the anchor book of Ola Electric Mobility as the valuation of the electric two-wheeler maker’s IPO has reached close to $4 billion, lower than earlier expectations. The IPO is scheduled to open on August 2. Domestic investors including SBI AMC, HDFC AMC, Nippon Life India AMC and UTI AMC will bid around $200 million, while international investors such as Fidelity, Nomura and Norway’s Norges Bank may bid between $75 million and $100 million.
No company has been able to go public since 2003
According to sources, an investor will be allowed a maximum of $30 million. Ola Electric’s IPO will be the carmaker’s first fundraising in over two decades. Maruti Suzuki, India’s largest carmaker, was the last carmaker to debut on the stock exchanges in 2003 as part of the government’s disinvestment programme. This means that since 2003, no Indian car company has been able to list its ITO on the market.
What is the timeline?
The total anchor book size is expected to be $350 million (Rs 3,300 crore), which is 45% of the total IPO size of Rs 6,200 crore. Of this, Rs 5,500 crore is from fresh issue of shares while the remaining amount is from offer for sale (OFS) of 85 million shares by existing investors. Ola CEO Bhavish Aggarwal is participating in the OFS and has placed 37.91 million shares on the block. As a result, his stake will be reduced from 45% to 37% post-IPO. The anchor book is expected to open on August 1, while the issue is likely to be published from August 2 to 6 and the listing is expected to take place on August 9.
read this too
You can invest from Rs 15,000.
As per SEBI rules, retail investors i.e. common man can invest only minimum Rs 15,000 and maximum Rs 2 lakh in IPO of any company. In such a situation, for Ola IPO too you will need minimum investment of Rs 15,000. In such a situation, you can invest money in Ola IPO and sell it after seeing actual profits when the company is listed in the stock market. The price band will be Rs 72 to Rs 76.
Let us tell you that Ola Electric had filed its IPO documents with SEBI on December 22, 2023 itself. According to Money Control News, the company may raise Rs 74 crore from the IPO. In this, apart from issuing new shares, the company’s investors will also offer the shares for sale.
