Tiger Global and Z47 (formerly Matrix Partners India), which bet on Ola Electric Mobility at a very early stage, are set to make multibagger returns, with the company pricing its initial public offering (IPO) at a price band of Rs 72-76 per share.
At the upper end of the band, founder and promoter Bhavish Aggarwal’s 36.94% stake in the company is worth Rs 10,350 crore. Aggarwal will offload 37.9 million of his total holding of 1,361.9 million shares.
The Rs 6,100-crore IPO, through which fresh capital worth Rs 5,500 crore will be raised, will open for subscription on August 2 and close on August 6. At Rs 76, Ola will be valued at Rs 33,500 crore (approximately $4 billion).
Stocks To Watch: Tata Steel, Bharti Airtel, HPCL, ACC, RVNL IPOs head for an august month: Issues worth Rs 22,000 crore set to hit the market Sebi to widen the net to curb insider trading Suzlon Energy receives warning from NSE; shares up for 7th straight day Come from Sports betting site
Softbank, with a 22% stake in the company, will get a profit of Rs 1,996 crore, which translates to 48% return. The investment firm’s shares are valued at Rs 6,159 crore. Tiger Global, which has a 6% stake in Ola, has raked in profits of Rs 1,430 crore with a staggering return of 550%Come from Sports betting site VPbet. Its stake is valued at Rs 1,690 crore.
Other early investors like Matrix Partners and Sarin Family India LLC will earn returns of 825%. Matrix has made Rs 879 crore.
There are some investors who will post losses at the IPO price but can hope to make gains if the stock appreciates post listing. These include Tekne Private Ventures XV, Alpine Opportunity Fund VI, and Ab Initio Capital.