Mutual funds garner 18% of Ola Electric IPO allotment

Bhavish Aggarwal-led Ola Electric has mobilised Rs 2,763 crore from the anchor investors on August 1. Domestic mutual funds, domestic life insurance companies and foreign funds were part of the anchor allotment.

The initial public offer (IPO) of Ola Electric Mobility, India’s largest electric two-wheeler maker, is open for subscription between August 2 and August 6. The issue comprises a fresh issue of Rs 5,500 crore and an offer for sale of Rs 645.96 crore, totaling the issue size of Rs 6145.96 crore. The company has fixed the IPO price band at Rs 72 to Rs 76 per equity share. About 60 per cent of the shares were reserved for institutional investors in the IPO that were allotted under the anchor book. Ten domestic mutual funds took part in the anchor allotment and garnered Rs 1,117 crore.

Out of the total allocation, 40 percent of the total anchor book was allocated to domestic mutual funds. Meanwhile, global investment firms got the lion’s share as they were allotted around 54 percent. Two domestic life insurance companies– Bharti AXA Life Insurance and Kotak Mahindra Life Insurance participated in the anchor allotment. A domestic institution – Bengal Finance And Investment Pvt Ltd got 0.2 percent of the anchor portion.

Foreign investors who participated in the anchor book included Nomura, Government Pension Fund Global, Fidelity, Templeton Global and Goldman Sachs.

Within the domestic mutual funds, SBI MF, HDFC MF and Nippon India MF got relatively higher allotments in the anchor portion.

Schemes across categories got allocation in the anchor allotment. Especially schemes that have exposure to auto and auto related sectors in their existing portfolio showed much interest in the Ola electric IPO.