Ola Electric GMP: Will the stock see a negative listing on Friday?

The initial buzz for Ola Electric IPO seems to be fading away as the company's GMP in the unlisted market is at a discounted price, according to market analysts.

When the IPO was announced, the premium was around 18-20% for the company's shares. Since then, it has fallen down significantly into the negative given the negative market sentiments.

If the current trends are sustained, the stock is expected to see a negative listing. The share allotment of Ola Electric IPO is likely to be finalised later today.


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.

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

Ahead of the issue 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.

Also Read: Ola Electric IPO share allotment likely today: Check status, GMP, listing date and other details

Ola Electric is a leading electric two-wheeler player in India with the 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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