Ola Electric IPO Price Band ₹72-₹76 per share

Ola Electric IPO: A Potential Multi-Bagger for Tiger Global and Matrix Partners Despite Investor Risks

Ola Electric IPO: Investors Face Mixed Fortunes

Ola Electric, a prominent player in the electric vehicle (EV) industry, has recently announced its initial public offering (IPO). This has generated significant buzz, particularly among investors. While some investors may face losses, early backers like Tiger Global and Matrix Partners stand to gain substantially. Here’s a detailed breakdown of the scenario:

Key Details of the IPO

• Price Band: The price band for the IPO is set at Rs 72-76 per share.
• Promoter Stake: Bhavish Aggarwal, the firm’s promoter, holds 1.36 billion shares (36.94% stake), valued at Rs 10,350 crore based on the price band.

Investor Impact

Potential Losses

• Alpine Opportunity Fund VI LP
  • Average Purchase Price: Rs 111.51 per share.
  • Current Value: 21.42 million shares, valued at Rs 238 crore.
  • Value at Upper Price Band: Rs 163 crore.
  • Potential Loss: Over 30%.
• Tekne Private Ventures XV Ltd
  • Average Purchase Price: Rs 113.12 per share.
  • Current Value: 36.32 million shares, valued at Rs 410 crore.
  • Value at Upper Price Band: Rs 276 crore.
  • Potential Loss: Over 30%.

Break-Even

• MacRitchie Investments Pte (Temasek)
  • Average Purchase Price: Rs 75.11 per share.
  • Current Value: 46.03 million shares, valued at Rs 350 crore.
  • Potential Return: Flat.

Gains

• Ashna Advisors LLP
  • Average Purchase Price: Rs 71.15 per share.
  • Current Value: 6.01 lakh shares, valued at Rs 4.58 crore.
  • Potential Return: 7%.
• Alpha Wave Ventures II LP
  • Average Purchase Price: Rs 62.38 per share.
  • Current Value: 128.50 million shares, valued at Rs 976 crore.
  • Potential Gain: Approximately 22%.
• SVF II Ostrich DE LLC (SoftBank)
  • Average Purchase Price: Rs 51.37 per share.
  • Current Value: 810.43 million shares, valued at Rs 6,159 crore.
  • Potential Gain: Approximately 48%.
• Internet Fund III Pte Ltd (Tiger Global)
  • Average Purchase Price: Rs 11.7 per share.
  • Current Value: 222.44 million shares, valued at Rs 1,690 crore.
  • Potential Gain: 550%.
• Matrix Partners India Investments III
  • Average Purchase Price: Rs 8.22 per share.
  • Current Value: 126.62 million shares, valued at Rs 962 crore.
  • Potential Gain: 824%.

Positives of the IPO

1. Significant Gains for Early Investors: Early backers such as Tiger Global and Matrix Partners stand to realize substantial gains, with returns of up to 824%. This underscores the potential of the IPO for those who invested early.
2. Strong Market Interest: The IPO’s price band, set at Rs 72-76 per share, indicates strong market interest and confidence in Ola Electric’s future prospects, despite the varied outcomes for different investors.
3. High Valuation for Promoter Stake: Bhavish Aggarwal’s substantial stake, valued at Rs 10,350 crore, highlights the strong confidence in the company’s long-term value and growth potential.
4. Solid Backing from Major Investors: The participation of major funds like Temasek, Tiger Global, and Matrix Partners demonstrates confidence in Ola Electric’s business model and future growth.
5. Potential for Market Expansion: The IPO reflects the company’s ongoing efforts to expand its market presence and solidify its position in the competitive EV industry.

Conclusion

The Ola Electric IPO presents a mixed bag for investors. While some, particularly those who bought shares at higher prices, may face significant losses, early investors like Tiger Global and Matrix Partners are set to enjoy substantial returns. The varied outcomes highlight the inherent risks and rewards associated with investing in tech IPOs.

FAQs

1. What is the price band for the Ola Electric IPO?

• The price band for the IPO is set at Rs 72-76 per share.

2. Who holds the largest stake in Ola Electric?

• Bhavish Aggarwal, the firm’s promoter, holds 1.36 billion shares, which is a 36.94% stake.

3. Which investors are facing potential losses?

• Investors like Alpine Opportunity Fund VI LP and Tekne Private Ventures XV Ltd, who bought shares at Rs 111.51 and Rs 113.12 per share respectively, may face over 30% losses.

4. Are there any investors who will break even?

• Yes, MacRitchie Investments Pte (Temasek), which bought shares at an average price of Rs 75.11 per share, is expected to break even.

5. Who are the big gainers in the Ola Electric IPO?

• Early investors like Tiger Global (Internet Fund III Pte Ltd) and Matrix Partners India Investments III will see gains of 550% and 824%, respectively.

6. How are the funds from the IPO being utilized?

• The funds will primarily be used for the Offer For Sale (OFS) where existing shareholders will sell part of their stake.

Ola Electric IPO Price Band ₹72-₹76 per share

Ola Electric IPO’s Anchor Book Expected on August 1; Public Issue Likely from August 2-6