With Ola Electric Mobility Ltd shares rallying 17 per cent, following a muted stock market listing on Friday, the company promoter Bhavish Aggarwal who held 1,36,18,75,240 shares, or 36.94 per cent stake, pre-listing, was valued at Rs 12,104 crore or $1.44 billion, with him making entry into India's billionaires club.
Aggarwal, 38, sold 37,915,211 Ola Electric shares in the offer for sale at Rs 76 a piece worth Rs 288 crore. He was left with 1,32,39,60,029 shares post the IPO, which are worth Rs 11,816 crore at Friday's intraday high of Rs 89.25 apiece.
The Indian billionaire list is led by Mukesh Ambani ($109 billion) and Gautam Adani ($105 billion), who are also the world's 11th and 12th richest, respectively. Among the top 500 billionaires globally, Mahendra Choksi & family ($5.85 billion), Rakesh Gangwal ($6.32 billion), Benu Bangur ($6.7 billion), Samir Mehta ($8.09 billion) and Sudhir Mehta ($8.09 billion) are some of the Indian billionaires that are a part of Bloomberg Billionaire index. '
“Despite receiving demand well below Street expectation, OLA listed well above the Street expectations. Post listing the short term view remains the same, thanks to weak financials and risk of negative cash flows in future," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Tapse said allotted investors should understand the risk, which could adversely impact Ola Electric's consolidated financial conditions post listing. He asked only risk-taking investors to continue to hold with a minimum holding period of 2-3 years.
Earlier today, Ola Electric Mobility made a flat listing, as the stock made its debut at Rs 76, the same as the issue price. There were even hopes of a discount listing. On BSE, the scrip got listed at a negligible discount of 0.01 per cent at Rs 75.99 on BSE.
The IPO ran from August 2 to August 6. It was sold in the price band of Rs 72-76 per share. Ola Electric raised a total of Rs 6,145.56 crore from the issue, which included a fresh share sale of Rs 5,500 crore and an offer-for-sale (OFS) up to 8,49,41,997 shares.
The issue was subscribed a total of 4.27 times. The quota for qualified institutional bidders (QIBs) was booked 5.31 times. The quota for non-institutional investors was subscribed 2.40 times. The portions reserved for retail investors and employees saw bidding for 3.92 times and 11.99 times, respectively.
Bengaluru-based Ola Electric Mobility was founded in 2017. It is a pure-play electric vehicle player that primarily manufactures electric vehicles and certain core components for electric vehicles such as battery packs, motors, and vehicle frames at the Ola Futurefactory.