Tepid start but stellar finish: Ola Electric triggers circuit on debut trade

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.

Established in 2017, Ola Electric Mobility manufactures electric vehicles (EVs) and EV components like battery packs, motors, and vehicle frames.

Shares of Ola Electric Mobility, an electric two-wheeler manufacturer, closed 20% higher at the upper circuit limit on Friday, the first day of listing.

The stock 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. To know more about Ola Electric Day 1 performance, CLICK HERE.

The company's market valuation stood at Rs 40,226.7 crore.

Also Read: Bhavish Aggarwal enters billionaire club; here's what he said after Ola Electric listing

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.

According to its IPO documents, 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-gigawatt hours (GWh) from 5 GWh.

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.

With PTI inputs

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