MUMBAI: The steep 26% valuation cut in the Rs 6,146 crore primary share sale from largest electric scooter maker Ola Electric at a price band of Rs 72-76 share will likely to see early investors’ investment value eroding by about 30%, but for the late entrants like SoftBank, Tiger Global, Matrix Partners and others, it will be a windfall.
The biggest beneficiaries are the Internet Fund, backed by Tiger Global, and Matrix Partners, which will achieve staggering gains of 550% and 824%, respectively.
While most of its early investors own over 60% of the Bengaluru-based company will lose up to 30% of their investment as the company has scaled down its value to nearly $4 billion, for late entrants like Tiger Global, Matrix Partners, this is a multibagger, as per the DRHP.
The heavy loss for those who entered the company at pre-IPO level is because the price band is set lower than their average acquisition price — a rare scenario for tech IPOs in recent years. Later-stage investors like SoftBank, which owns close to 25% in the Bhavesh Aggrawal founded firm, Tiger Global, and Matrix Partners stand to enjoy multi-bagger gains.
While investors such as Alpine Opportunity Fund, which bought shares at an average price of Rs 111.51, and Tekne Private Ventures, which bought at Rs 113.12/share, are likely to see over 30% losses from upper price band of Rs 76 a share. Alpine Opportunity Fund’s 21.42 million shares are valued at Rs 238 crore based on their average price, but will drop to Rs 163 crore at the upper price band, which is Rs 76.
Biggest gainers
Biggest beneficiaries are Tiger Global, and Matrix Partners, which will gains 550% and 824%, respectively
SoftBank, to gain
Later-stage investors like SoftBank, which owns as much as 25% in the company, Tiger Global, and Matrix Partners stand to enjoy multi-bagger gains