Ola Electric Mobility IPO: Shares Make Flat Debut At Rs 76, Surge 11% Post-Listing
Ola Electric IPO: Ola Electric's Rs 6,145-crore IPO was highly successful, with the offer being oversubscribed 4.27 times on the final day of bidding
Ola Electric IPO: Shares of Ola Electric Mobility Ltd made their stock market debut on a flat note on Friday, with the stock listing marginally lower than its issue price of Rs 76. The company's shares opened at Rs 75.99 on the BSE, a slight dip of 0.01 per cent from the issue price. However, the stock quickly regained momentum, climbing 10.71 per cent to close at Rs 84.14.
On the National Stock Exchange (NSE), the shares were listed at Rs 76, matching the issue price. The stock later surged by 10.80 per cent, closing at Rs 84.21. The company's market valuation reached Rs 36,742.21 crore during early trading hours.
Ola Electric's Rs 6,145-crore Initial Public Offering (IPO) was highly successful, with the offer being oversubscribed 4.27 times on the final day of bidding. The IPO price band was set between Rs 72 and Rs 76 per share, with the final issue price fixed at the upper end of the range.
The IPO, the first by an electric vehicle manufacturer in India, included a fresh issue of shares worth Rs 5,500 crore and an Offer-for-Sale (OFS) of up to 8,49,41,997 equity shares.
According to the company's Red Herring Prospectus (RHP), Ola Electric plans to use Rs 1,227.6 crore from the proceeds to expand the capacity of its cell manufacturing plant from 5 GWh to 6.4 GWh. An additional Rs 1,600 crore will be allocated for research and product development, Rs 800 crore for debt repayment, and Rs 350 crore for organic growth initiatives.
The expansion of the Ola Gigafactory in Krishnagiri, Tamil Nadu, will be financed through internal accruals and long-term borrowings by its subsidiary, Ola Cell Technologies Pvt Ltd (OCT). The company has earmarked a portion of the IPO proceeds for the capital expenditure required for the cell manufacturing plant's capacity expansion.
Ola Electric's strong market debut reflects the growing investor confidence in the electric vehicle sector, particularly in companies leading the charge in sustainable mobility.
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