Ola Electric shares pare gains, up only 1.8% after hitting upper circuit twice; check details

At 12:52 pm, the stock was trading 1.8% higher at ₹111.5 on the NSE. Intraday, it hit a high of ₹129.4, up 18.2%.

On Monday, the scrip of Bhavish Aggarwal-led electric two-wheeler company surged 20% to ₹109.4 the upper circuit limit.

On Friday, its listing day, the company's shares jumped 20% to hit the upper circuit limit, against the issue price of ₹76.

The ₹6,145-crore initial public offering (IPO) of Ola Electric, with a price band of ₹72-₹76, got subscribed 4.27 times during the bidding window from August 2 to August 6.

The public offer, the first by an electric vehicle maker, had a fresh issue of up to ₹5,500 crore and an offer-for-sale or OFS of up to 8,49,41,997 equity shares.

According to its IPO documents, Ola Electric plans to utilise ₹1,227.6 crore 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 development (R&D), another ₹800 crore will be deployed to repay debts and ₹350 crore for organic growth initiatives.