Considering the pricing for the IPO, two funds — Tiger Global and Z47 (formerly Matrix Partners India), which bet on the company at very early stages are set to make multibagger returns.
Tiger Global, through its arm Internet Fund Pte, has acquired the shares at Rs 11.70 and will get around 549% return on investment through the IPO. The PE firm is selling about 63.6 lakh shares under the OFS and is likely to make a profit of Rs 49 crore.
Tiger Global holds a 6.03% stake or 22.34 crore shares in the company before the IPO. The total stake in the company is valued at Rs 1691 crore at the upper end of the price band.
Meanwhile, Matrix Partners India, which has rebranded recently to Z47, has a weighted average acquisition price of Rs 8.22 per share. The venture capital fund will make a return on investment of a massive 824% through the public offer.Matrix Partners India, which has a holding of 3.43% (1.26 crore shares) in the company will offload about 37.27 lakh shares through the OFS and make a profit of Rs 28.3 crore.It is not all rosy for investors selling shares through the OFS as some funds are likely to make losses and cut down on pricing for the IPO. Ola Electric was initially hoping for a valuation of over Rs 40,000 crore ($5 billion) but eventually settled down at $4 billion.Alpine Opportunity Fund VI and Tekne Private Ventures, which have acquired the shares at Rs 111.51 and Rs 113.12, respectively, will make losses under the OFS.
Alpine is looking to offload 6.3 lakh shares and Tekne will give up 9.75 lakh shares through the offer for sale (OFS) component.
The e-scooter maker, which is also backed by SoftBank, will launch its IPO on August 2 and the same will be available for subscription till August 6.
Ola Electric’s IPO will be the first by an Indian electric vehicle maker. The company is the biggest player in the e-scooter market in a country where the adoption of clean vehicles is still low but rising rapidly.
