Ola Electric Mobility Shares Soar on Debut

9 Aug 2024 , 05:02 PM

Ola Electric Mobility Ltd. shares were launched on the NSE at par with their issue price of ₹76, making for a modest stock market debut. Similarly, the stock began its first trading session at BSE ₹75.99. Following the IPO, the stock reached a 20% upper circuit limit on Friday (August 9).

Before the IPO, Ola Electric shares were selling at a discount of ₹3 in the unlisted market.

Ola Electric’s IPO was oversubscribed 4.27 times, owing to a strong response from qualified institutional purchasers and retail investors.

The issue was up for bidding between August 2 and August 6, with the pure-play EV player offering its shares in the fixed price band of ₹72-76 per share with a lot size of 195 shares.

Ola Electric Mobility raised ₹6,146 crore during its IPO, including a fresh share sale of ₹5,500 crore and an offer-for-sale (OFS) of up to 8.49 lakh shares.

The corporation would invest ₹1,600 crore from net proceeds in research and development. “We cannot assure you that such investment into research and development will proceed as planned, result in the creation of tangible assets, or achieve the results as anticipated,” the business noted as part of its risk considerations.

Ola Electric is a pure EV business in India, with integrated technology and production capabilities for EVs and their components. It manufactures EVs and essential EV components and has delivered seven models while announcing four more. As of March 31, 2024, Ola Electric has 870 experience centres, 431 service centres, and a website via an Omnichannel distribution network.

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