Ola Electric Mobility’s initial public offering (IPO) has been subscribed 125% so far on the third and final day of the bidding process. The issue was fully subscribed by the end of day 2.

The retail investors portion was subscribed the most at 3.27 times, followed by the non-institutional investor category at 1.47 times. The allocation for qualified institutional buyers was booked 0.42 times.

Additionally, the portion set aside for employees was booked 10.23 times.

According to the data available on the exchanges, the investors made bids for 57.94 crore equity shares, compared to the 46.51 crore equity shares offered for the subscription by 12 pm on Tuesday, August 6. The three-day bidding for the issue will conclude today.

In the grey market, shares of Ola Electric Mobility are trading with a premium of just ₹2.50 per share. The grey market premium (GMP) of the company has taken a big hit amid the rising volatility in the broader markets.

However, it is important to note that grey market premiums are just an indicator of how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.

Bhavish Aggarwal-led Ola Electric is selling its IPO shares in the price band of ₹72-76 apiece, with 195 shares in one lot.

The company plans to raise ₹6,146 crore through the IPO, which includes a fresh share sale of ₹5,500 crore and an offer-for-sale (OFS) of 8.49 crore equity shares.

Promoter Bhavish Aggarwal is also among the selling shareholders, along with investors like SoftBank, Temasek, Matrix Partners India etc.

The company will use ₹1,600 crore of the net proceeds for investment in to research and development purposes. “We cannot assure you that such investment into research and development will proceed as planned and result in creation of tangible assets or achieve results as anticipated,” the company wrote as part of its risk factors.

Ola Electric is a pure EV play in India with integrated technology and manufacturing capabilities for EVs and EV components. It is involved in the manufacturing of EVs and core EV components, having delivered seven products and announced four new ones. Through an Omnichannel distribution network, Ola Electric has 870 experience centres, 431 service centres along with its website as on March 31, 2024.

The company has been loss-making and incurred a loss of ₹1,584 crore in financial year 2024, higher than the ₹1,472 crore loss it incurred in financial year 2023.

Kotak Mahindra Capital, Citigroup Global Markets India, BofA Securities India, Goldman Sachs (India) Securities, Axis Capital, ICICI Securities, SBI Capital Markets and BOB Capital Markets are the bankers to the issue.

The allotment for the IPO is expected to be finalised by tomorrow. The equity shares of the company will list on BSE, NSE with a tentative listing date fixed as August 9.