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Tepid start but stellar finish: Ola Electric triggers circuit on debut trade
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2 min read | Updated on August 12, 2024, 10:24 IST
SUMMARY
Ola Electric made its debut at par with the issue price of ₹76 on the National Stock Exchange (NSE). However, the scrip made a remarkable comeback and jumped 20% to ₹91.2 to hit the upper circuit.
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Established in 2017, Ola Electric Mobility manufactures electric vehicles (EVs) and EV components like battery packs, motors, and vehicle frames.
The company's market valuation stood at Rs 40,226.7 crore.
The ₹6,145-crore initial public offer of Ola Electric Mobility subscribed 4.27 times during the three-day bidding period.
The initial share sale had a price band of ₹72-₹76 per share.
The public offer of the Bhavish Aggarwal-led electric two-wheeler company 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.
The company is also looking to utilise ₹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 Phase 1 (a) and Phase 1 (b) of the establishment 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 expenditures incurred by OCT to expand the capacity of the cell manufacturing plant from 5 GWh to 6.4 GWh.
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