Ola Electric Mobility shares make flat market debut; later jumped nearly 11%

Shares of electric two-wheeler company Ola Electric Mobility Ltd listed on a flat note on Friday against the issue price of ₹76, but later bounced back and jumped nearly 11%.

The stock made its debut at ₹75.99, marginally down by 0.01% from the issue price on the BSE. Later, it jumped 10.71% to ₹84.14.

At the NSE, shares of the firm listed at par with the issue price of ₹76. Later in the trade, the stock soared 10.80% to ₹84.21.

The Bhavish Aggarwal-led company's market valuation stood at ₹36,742.21 crore during the early trade.

The ₹6,145-crore initial public offer of Ola Electric Mobility received 4.27 times subscription on the final day of bidding on Tuesday.

The initial share sale had a price band for the offer at ₹72-76 a share.

The Initial Public Offering (IPO), the first by an electric vehicle maker, had a fresh issue of up to ₹5,500 crore and an Offer-for-Sale (OFS) of up to 8,49,41,997 equity shares.

According to its prospectus, Ola Electric Mobility Ltd (OEML) plans to utilise ₹1,227.6 crore out of the proceeds of its ₹5,500 crore public issue on capacity expansion of its cell manufacturing plant to 6.4 GWh from 5 GWh.

The company is also looking to use ₹1,600 crore from the fresh fund on research and product development, another ₹800 crore will be deployed to repay debts and ₹350 crore for organic growth initiatives.

In its Red Herring Prospectus (RHP), OEML said the Phase 1 (a) and Phase 1 (b) of the set up and expansion of the Ola Gigafactory at Krishnagiri district in Tamil Nadu will be funded from internal accruals and long-term borrowings availed by its arm Ola Cell Technologies Pvt Ltd (OCT).

The company said a portion of the proceeds will be used for capital expenditure to be incurred by OCT for expansion of the capacity of cell manufacturing plant from 5 GWh to 6.4 GWh.