Ola Electric's Rs 6000 Crore IPO Opens for Subscription

Hello,
Yesterday, the markets closed at all-time highs, with the Nifty 50 surpassing the 25,000 milestone. The US Federal Reserve has suggested potential rate cuts around September. Meanwhile, the RBI has identified eligible bidders for the IDBI Bank stake sale. Additionally, Ola Electric's highly anticipated IPO opens for subscription today, priced between Rs 72 and Rs 76, don’t miss out on our overview of the company.

Markets📊 
As of 01/08/2024 Market Close

• The Indian stock market benchmarks, the Sensex and Nifty 50, reached new closing highs on Thursday, August 1, marking their fifth straight session of gains. The Sensex reached an all-time high of 82,129.49, while the Nifty 50 broke the 25,000 mark, setting a new peak at 25,078.30 during the session.

• The US Federal Reserve's dovish remarks, indicating a possible rate cut in its upcoming September policy meeting, gave the markets the push they needed to surge into uncharted territory.

Notable Gainer & Loser📈📉 
Source: Moneycontrol

Aster DM Healthcare Ltd +6.04%

• Shares rose by 6 percent after the company's first-quarter revenue increased by over 19 percent, meeting analysts' expectations.

• Revenue from operations saw a nearly 24 percent rise.

KRBL Ltd (7.52%)

• Shares of the Basmati rice exporter fell by 7.5 percent after the company posted disappointing June quarter results.

• Its profit plummeted over 55 percent year-on-year to Rs 86.6 crore, while revenue from operations declined by a little over 15 percent.

Yesterday’s Highlights📒 

• The RBI has identified eligible bidders for the IDBI Bank stake sale. (ET)

• Microlenders have cut rates and pledged to improve operations after the RBI governor highlighted concerns about 'usurious' charges. (ET)

• India has reduced the windfall tax on crude oil to Rs 4,600 per tonne. (ET)

• The RBI has released draft rules for AePS touchpoint operators to prevent fraud. (YS)

• Moody's has stated that the RBI's tighter liquidity norms are credit-positive for banks. (RT)

• Passenger vehicle sales have dropped for the first time in 2.5 years. (ET)

• Maruti Suzuki plans to launch one EV model every year, starting with its first EV in January. (ET)

Featured Highlight💡 
Sources: EN, Mint, BS

Ola Electric’s IPO Overview

• IPO Details: Ola Electric's IPO, priced between ₹72-76 per share, aims to raise ₹6,146 crore. It includes a fresh issue worth ₹5,500 crore and opens for subscription from August 2 to August 6, 2024. The company plans to use the proceeds for capital expenditure, debt repayment, R&D, and other corporate purposes.

• Stakeholders and Allocation: Major stakeholders include Bhavish Aggarwal (36.94%), SoftBank (21.98%), and investments from Hyundai Motor and ANI Technologies. 75% of the shares are reserved for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors.

• Financial Performance: Ola Electric reported significant revenue growth, reaching ₹5009.83 crore in FY24, driven by electric scooter sales, despite a widened loss of ₹15,84.44 crore. The company sold 3,29,618 scooters in FY24, holding a 35% market share in India's electric two-wheeler market.

• Global Presence and Manufacturing: Ola Electric's subsidiaries span the USA, Netherlands, UK, and China, reflecting its global presence. The company is eligible for India's Production-linked Incentive (PLI) Schemes, emphasizing its commitment to domestic manufacturing and innovation.

• Risks and Competitiveness: Identified risks include economic downturns, geopolitical tensions, and regulatory changes. Ola Electric's gross margin of 12.58% is lower than competitors like TVS Motors, Eicher Motors, Bajaj Motors, and Hero MotoCorp.

IPO / Issuances🚀 

• Ola Electric's IPO has attracted $2 billion in bids from institutional investors. (YS)

• Hero Fincorp plans to raise Rs 3,668 crore ($438Mn) through its IPO. (BS)

• Infra.Market is in talks to appoint investment banks for a Rs 3,349 crore ($400Mn) IPO. (Moneycontrol)

• Pharma firm Rubicon Research has filed draft papers for a Rs 1,085 crore ($129Mn) IPO. (BS)

• Ceigall India's IPO was subscribed 60% on the first day, with NII leading the demand. (Moneycontrol)

• SoftBank and Snapdeal anticipate significant returns from the Unicommerce IPO. (YS)

This week’s mainboard IPO schedule

• Akums Drugs and Pharmaceuticals (RHP)

  • Offering Period: 30 July - 01 August, 2024

  • Listing Date: 06 August, 2024

  • Issue Price: 646-679

  • Lot Size: 22

• Ceigall India (RHP)

  • Offering Period: 01-05 August, 2024

  • Listing Date: 08 August, 2024

  • Issue Price: 380-401

  • Lot Size: 37

• Ola Electric Mobility (RHP)

  • Offering Period: 02-06 August, 2024

  • Listing Date: 09 August, 2024

  • Issue Price: 72-76

  • Lot Size: 195

Deal Activity🤝 

M&A / Investments

• Blackstone is preparing a Rs 40,000 crore ($4.7Bn) bid to acquire a majority stake in Haldiram’s. (FE)

• Capital Group sold a 4.3% stake in SIS for Rs 258 crore ($30Mn). (YS)

• Clix Capital has secured Rs 220 crore ($26Mn) in funding from its existing investors. (ET)

• Adani Enterprises' board has approved the demerger of its food and FMCG business. (BS)

• Tata Motors' board has approved a proposal to demerge the company into two listed entities. (BS)

• Godrej Agrovet has signed an agreement to acquire Tyson's stake in Godrej Tyson Foods. (BS)

Debt

• MTNL is seeking Rs 1,151 crore ($137Mn) for interest on sovereign guarantee bonds in FY25. (BS)

VC/Funds

• Trifecta Capital has launched its fourth venture debt fund with a corpus of Rs 2,000 crore ($238Mn). (ET)

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