Ola Electric’s $734 million initial public offering (IPO) has been fully subscribed by the second day of bidding, even as global equity markets experienced a sharp downturn.
The SoftBank-backed company’s IPO, notable for being the first by an electric vehicle (EV) maker in India and the largest in the country this year, garnered bids totaling approximately $447 million, equating to 1.06 times the shares on offer, according to exchange data released on Monday.
The IPO saw 35 percent subscription on its first day and has one more day of bidding remaining. The robust interest reflects strong investor confidence despite the volatile market conditions, Reuters news report said.
India’s stock market has been vibrant this year, with over 150 companies raising nearly $5 billion, almost double the amount raised during the same period in 2023, according to LSEG data. This surge comes even as Indian equity markets recorded their worst day in two months on Monday due to a global market sell-off.
Founded by Bhavish Aggarwal, Ola Electric plans to allocate a significant portion of the IPO proceeds to developing its in-house cell manufacturing capabilities. This investment aims to enhance cost efficiency for the currently loss-making company by powering its own scooters with domestically produced cells.
The IPO has attracted substantial interest from major institutions, including Nomura, Norges Bank, and several domestic mutual funds, which collectively bid for $2 billion worth of shares—six times the amount allocated for institutional investors.
As bidding continues, Ola Electric’s successful IPO signals strong market confidence in India’s burgeoning EV sector and the company’s potential for growth and innovation.