Ola Electric Finally Secures SEBI Approval for Rs 7,250 crore IPO

Hello,
Markets ended flat after trading higher for much of the session due to profit booking. In some big news, Ola Electric received the go-ahead from SEBI for an IPO at a proposed $6 billion valuation.

Markets 📊 
As of 11/06/2024 Market Close

• Although starting strong and maintaining positive momentum for much of the session, the Sensex and Nifty 50 closed almost unchanged due to profit-taking and a lack of new catalysts.

• Investors are taking profits in large-cap stocks as attention turns to the policy decisions of the new government, the upcoming Union Budget, and global indicators.

Notable Gainer & Loser 📈📉 
Source: Moneycontrol

Hindustan Construction Company Ltd +19.10%

• Elara Securities initiated coverage on HCC with a buy rating, expressing confidence in the company's potential to regain its previous success.

• Elara set a target price of Rs 63 per share for HCC, anticipating a 58 percent increase from current levels. The shares closed 19.1 percent higher.

PNC Infratech Ltd (8.07%)

• The stock plunged over 9 percent on June 11 following Central Bureau of Investigation (CBI) raids at the residences of Managing Director Yogesh Kumar Jain, Whole-Time Director Talluri Raghupati Rao, and the company's Agra office, as part of a Rs 10 lakh bribery case investigation.

Yesterday’s Highlights 📒 

• BPCL intends to establish a new refinery for Rs 50,000 crore ($6Bn). (BS)

• HCLTech signs a Rs 2,300 crore ($278Mn) agreement with Germany's apoBank. (BS)

• Universities will be allowed to offer admissions twice a year, similar to foreign institutions, says the University Grants Commission (UGC). (ET)

• RBI declines to extend RK Bansal's third tenure as MD & CEO of Edelweiss ARC. (ET)

• FIDC (Finance Industry Development Council) requests RBI to ease draft guidelines on infrastructure provisioning. (TH)

• Suzlon secures a 103.95 MW wind project from AMPIN Energy. (ET)

• Indians increasingly rely on 10-minute grocery apps, putting pressure on small retailers. (ET)

• Persistent Systems collaborates with Google Cloud to promote GenAI in key markets. (BS)

• SBI launches 'SME Digital Business Loans,' offering loan sanctions in 45 minutes. (BS)

• Tata Motors aims for a 4-6% rise in passenger vehicle market share in the next 2 to 3 years. (ET)

Featured Highlight 💡 
Sources: BT, Moneycontrol, BS

Ola Electric Secures SEBI Approval for Rs 7,250-Crore IPO

• IPO Approval and Details: Ola Electric has received approval from the Securities and Exchange Board of India (SEBI) for a Rs 7,250-crore ($868Mn) initial public offering (IPO), with a fresh issue of Rs 5,500 crore ($658Mn) and an offer for sale (OFS) of Rs 1,750 crore ($209Mn).

• Use of Funds: The funds raised will be used for capital expenditure (Rs 1,226 crore), debt repayment (Rs 800 crore), research and development (Rs 1,600 crore), and inorganic growth (Rs 350 crore), including establishing the Ola Gigafactory for battery production and EV manufacturing.

• Market Position: Ola Electric holds a dominant position in the Indian electric vehicle two-wheeler market, with a 52% market share. The company registered sales of 34,000 units in the latest month, marking a significant 54% year-on-year growth.

• Competitive Landscape and Valuation: Competing with TVS Motor, Bajaj Auto, and Ather Energy, Ola Electric was valued at Rs 45,000 crore ($5.4Bn) in September 2023 and aims for a Rs 50,000 crore ($6Bn) valuation through the IPO. The company plans to list its shares by mid-July and will engage with investors to gauge demand.

IPO / FPO / Issuances 🚀

• Ola Electric receives SEBI approval for a Rs 7,250 crore ($868Mn) IPO. (Moneycontrol)

• Transformers and Rectifiers initiates a Rs 500 crore ($60Mn) QIP. (cnbctv18)

• boAt is in talks to raise funds, aims for an IPO in the next 12-18 months. (SN)

This week’s mainboard IPO schedule

• The ixigo IPO was subscribed over 9.33 times on day 2, driven by strong demand from retail investors. (Mint)

Deal Activity 🤝 
(M&A / PE / Fundraise / Investments / Debt)

• State Bank of India (SBI) plans to raise up to Rs 25,000 crore ($3Bn) through debt in FY25. (ET)

• Union Bank plans to raise Rs 10,000 crore ($1.19Bn), including Rs 6,000 crore ($718Mn) from a stake sale. (BS)

• Neo Asset Management raises Rs 2,575 crore ($308Mn) for its Credit Opportunities Fund. (ET)

• Kotak Alternate Asset Managers invests Rs 1,445 crore ($173Mn) to assist Matrix Pharma in executing an acquisition. (ET)

• PE firm, CX Partners acquires a controlling stake in fertility center Sabine for Rs 420 crore ($50Mn). (VCC)

• Bharti Airtel converts Rs 416 crore ($49.87Mn) worth of foreign debt bonds into equity. (BS)

• Zomato to invest Rs 300 crore ($35.9Mn) in quick commerce unit Blinkit as competition with Swiggy and Zepto intensifies. (ET)

• Ola Electric raises Rs 100 crore ($12Mn) in debt ahead of its IPO. (EN)

• JCB Salons India raises Rs 40 crore ($4.8Mn) from Blacksoil for strategic expansion. (EN)

• Nazara's subsidiary NODWIN Gaming acquires Ninja Global FZCO for Rs Rs 29 crore ($3.57Mn). (SS)

• CCI approves Mitsubishi Corporation's investment in TVS Certified and TVS Vehicle Mobility Solutions. (BS)

• Bank of India purchases more than a 6% stake in the recently established CCIL IFSC. (BS)

• Unifi Capital introduces two GIFT City funds to capitalize on global investment opportunities. (BB)

VC 🤑 

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