Ola Electric IPO fully subscribed on day two

Ola Electric’s initial public offering (IPO) was fully subscribed at 4:24 PM on day two of the public issue, with the total offering subscribed almost 2X at the end of bidding for the day.

The retail portion of the offering was subscribed almost 3X times on day two.

The IPO, one of the largest in India this year, saw bids from qualified institutional buyers (QIBs) on the second day of its bidding, with the portion getting subscribed 40%. Typically, bids from QIBs come in later as they wait to gauge the overall market sentiment before bidding.

The non-institutional investors portion also saw robust bidding as it was fully subscribed on day two, compared to 20% on the first day.

The employee reserved category led the subscription, with the offering subscribed about 9 times followed by the retail category subscribed 2.87 times.

Ola Electric’s IPO was subscribed 35% when it opened on August 3, led by retail investors and the employee reserved category. There were very few bids from QIBs on Friday.

The company has priced its IPO between Rs 72 and Rs 76 per share, with a face value of Rs 10, and will be valued at Rs 33,500 crore (around $4 billion) at the upper end of the offering.

The Bhavish Aggarwal-led company’s IPO constituted a fresh issue of Rs 5,500 crore and an offer for sale (OFS) component of 8.4 crore shares. It will be making its debut on India’s stock exchanges on August 9.

According to the company’s red herring prospectus (RHP), Aggarwal will offload 37.9 million shares in the IPO.

The IPO opened for anchor investors on August 1 and raised Rs 2,763 crores from 80 domestic and foreign funds. Anchor investors including State Bank of India Mutual Fund, HDFC Mutual Fund, Nomura India Investment Fund, and Goldman Sachs (Singapore) Pte Ltd were allotted shares.

According to a report by Reuters, the company received $2 billion worth of bids from institutions.

The SoftBank-backed company will close its IPO subscription on Tuesday, August 6.

(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director in Ola Electric.)

(The copy was updated with subscription figures.)