Investors of the IPO of electric vehicle company Ola Electric Mobility had to suffer losses on the very first day in the market today. This IPO, which came after widespread discussions and months of waiting, received a cold response. After that, the listing of the company’s shares in the market today also proved to be poor.
Shares listed at slight discount
At 10 am, Ola Electric shares were listed on NSE at Rs 75.99 with a discount of 0.01 percent. The price band of this IPO was Rs 72 to Rs 76, while one lot contained 195 shares. In this way, to invest in the IPO, investors had to spend at least Rs 14,820 on each lot. Investors may not have suffered much loss due to the listing at Rs 75.99 with a slight loss against the upper price band of Rs 76, but all hopes of profit were dashed.
However, within a few minutes, the shares rose sharply and the stock climbed 9 per cent on the NSE. After the initial few minutes of trading, at 10:10 am, Ola Electric’s stock had reached the level of Rs 84.21 with a gain of about 10 per cent.
The grey market was already indicating
There were already indications of Ola Electric shares being listed at a discount. Before listing today, Ola Electric shares were trading at a discount of Rs 3 in the grey market and the premium (GMP) had gone negative i.e. below zero (at minus 3). The premium falling to zero or falling into the negative zone in the grey market indicates a poor listing.
IPO bigger than 6 thousand crore rupees
The much-awaited IPO of Ola Electric Mobility Limited opened on August 2 and remained open for subscription till August 6. Ola Electric has succeeded in raising Rs 6,145.56 crore from the market through this IPO. The IPO included a fresh issue of 72.37 crore shares worth Rs 5,500 crore and an offer for sale (OFS) of 8.49 crore shares worth Rs 645.56 crore.
IPO got such subscription
Ola Electric’s IPO received a sluggish response in the market. It received 5.53 times subscription in the QIB category, 2.51 times in the NII category and 4.05 times in the retail category. Due to the discount of Rs 7 per share, the employee category received the highest subscription of 12.38 times. In this way, the IPO was subscribed 4.45 times overall.
Also read: Global sell-off spoils Ola Electric IPO’s party? GMP turns negative before listing
