Ola Electric IPO booked 35 per cent on day one

NEW DELHI: The much-anticipated Rs 6,145 crore initial public offering (IPO) of electric two-wheeler company Ola Electric received a dull response, with the issue being subscribed only 35 per cent or 0.35 times on the first day of the bidding on Friday. The issue, open for subscription from August 2 to August 6, received bids for 16.31 crore shares against 46.51 crore shares on offer.

Decent enthusiasm came from retail investors as their quota was subscribed 1.57 times. The portion set aside for non-institutional investors was subscribed only 20 per cent while the portion for qualified institutional buyers (QIBs) portion is yet to be booked. The employee portion was booked 4.88 times.

The IPO is a combination of a fresh issue of equity shares up to Rs 5,500 crore and an offer for sale (OFS) of 8.49 crore equity shares worth Rs 645.56 crore, at the upper end of the price band, by promoters and investors. This takes the total issue size to Rs 6,145.56 crore. Korean auto giant Hyundai Motor Company will own shares worth USD 99 million of Ola Electric if the ongoing issue sails through.