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

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

Upstox

2 min read | Updated on August 12, 2024, 10:24 IST

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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.

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.
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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.

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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