Initial Ola Electric IPO buzz fades away as GMP in negative ahead of listing. Will there be a surprise?

The shares of Ola Electric will debut on the exchanges on Friday and ahead of the listing, the company's GMP is still negative in the unlisted market, according to market analysts.

The negative or zero GMP indicates a negative listing for the stock, despite a strong buzz for the IPO, given the company is a market leader in the electric two-wheeler market.

When the IPO was announced, the premium was around 18-20% for the company's shares. However, as market sentiments reversed, the GMP has fallen significantly into the negative territory and never recovered.


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

The issue, which closed on August 6, was booked 4.26 times, driven by decent response from qualified institutional buyers and retail investors.

Ahead of the IPO opening, the company has raised just over Rs 2,700 crore from anchor investors including Nomura, HDFC Mutual Fund, SBI Mutual Fund and various others.

Ola Electric is a leading electric two-wheeler player in India with highest revenues among all the EV two-wheeler manufacturers. It is also building vertically integrated technology and manufacturing capabilities for EVs and EV components, including cells.

The company manufactures EVs and certain core EV components like battery packs, motors and vehicle frames at the Ola Futurefactory. It delivered seven products and additionally announced four new products since the first product announcement in August 2021.

Ola Electric's revenue from operations increased to Rs 5,009.8 crore in fiscal 2024, up from Rs 2,630.9 crore in fiscal 2023. This growth was primarily driven by increased sales of the Ola S1 and Ola S1 Pro scooters and the commencement of deliveries of the Ola S1 Air and Ola S1 X+ in fiscal 2024.

However, the company's loss for the year increased to Rs 1,584.4 crore in fiscal 2024, up from a loss of Rs 1,472 crore in fiscal 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.

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