Ola Electric IPO day 2: GMP, subscription status to review? Should you apply?

Ola Electric IPO: Ola Electric Mobility Limited's initial public offering (IPO) hit the Indian primary market on 2nd August 2024 and will remain open for bidders until 6th August 2024. Ola Electric IPO subscription status suggests that the most significant public issue of the year received a strong response from retail investors. The company has declared the Ola Electric IPO price band at ₹72 to ₹76 per equity share.

The company aims to raise ₹6,145.56 crore from its initial offer, of which ₹5,500 crore is aimed at issuing fresh shares. ₹645.56 crore is reserved for the Offer for Sale (OFS) route. However, the premium of Ola Electric Mobility share has decreased after day one of bidding. According to stock market observers, Ola Electric's share price is at a premium of ₹10 in the grey market today.

Ola Electric IPO GMP today

As mentioned above, today's Ola Electric IPO grey market premium (GMP) is ₹10, ₹6 lower than Friday's Ola Electric IPO GMP of ₹16. Market observers said Ola Electric IPO GMP slipped due to sharp selling in the Indian stock market for the last two successive sessions. They noted that weak global market cues led to heavy selling in the Asian, European and US stock markets in the last session of the previous week. However, the biggest IPO of the year was fully subscribed in the retail space. 

Ola Electric IPO subscription status

By 11:57 AM on day 2 of bidding, the public issue had been booked 0.66 times, the retail portion of the book build issue had been subscribed 2.48 times, and the NII portion had been filled 0.70 times.

Ola Electric IPO review

The BP Equities report, giving the public issue a 'subscribe' tag, says, "On account of the positive EV market outlook, favourable regulatory environment, a large quantum of fresh issue in the IPO, announcement of new models along with the upcoming cell manufacturing unit (Gigafactory), we have a positive view for the company from a medium to long term perspective. We, therefore, recommend a SUBSCRIBE rating for the issue."

Anand Rathi has also given a 'subscribe' tag to the public issue, saying, "At the upper price band, the company is valuing at Marketcap/Sales of 6.6x with a market cap of ₹335,220 million post issue of equity shares. Top global automobile entities currently trade between 1-8x as on market cap/sales. Therefore, we believe the company is richly priced on the valuation front. Thus, we recommend a "Subscribe – long term" rating to the IPO with a higher risk appetite."

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.