Ola Electric Mobility Shares Surge 20% on Debut, Closing at ₹91.18
News Mania Desk/Agnibeena Ghosh/9th August 2024
Ola Electric Mobility’s shares made a remarkable debut on August 9, with their price hitting the upper circuit limit of 20% above the issue price. The stock, initially priced at ₹76, witnessed a strong performance throughout the trading day, eventually closing at ₹91.18 on the Bombay Stock Exchange (BSE), marking a 20% increase from its issue price.
The shares opened at ₹76 and quickly gained momentum, reaching a high of ₹91.18 multiple times during the session. The impressive debut exceeded analysts’ expectations, showcasing significant interest from investors. On the National Stock Exchange (NSE), the shares closed at ₹91.20, reflecting the same 20% gain and establishing a market capitalization of ₹40,226 crore.
The stock’s trading was subject to a 20% upper circuit limit, set at ₹91.18, and a lower circuit limit of ₹60.80, as determined by the exchange. This circuit breaker mechanism is designed to curb extreme volatility and ensure market stability.
In terms of trading volume, Ola Electric Mobility saw substantial activity, with 52.5 crore equity shares exchanged on the NSE and 4.75 crore shares traded on the BSE. The strong debut was backed by the company’s recent public issue, which raised ₹6,146 crore. The initial public offering (IPO) was highly successful, being subscribed 4.27 times during the subscription period from August 2 to August 6.
The IPO consisted of a fresh issue of ₹5,500 crore and an offer-for-sale of 8.49 crore shares worth ₹645.6 crore from existing shareholders, including founder Bhavish Aggarwal. The price band for the issue was set between ₹72 and ₹76 per share.
The funds raised from the IPO will be utilized for several strategic initiatives. Ola Electric plans to use the proceeds for expanding the capacity of its cell manufacturing plant from 5 GWh to 6.4 GWh, repaying existing debt, investing in research and product development, and supporting organic growth initiatives.
Ola Electric, a prominent player in the electric vehicle (EV) industry, manufactures not only electric vehicles but also essential EV components such as battery packs, motors, and vehicle frames at its Ola Futurefactory. Since unveiling its first product in August 2021, the company has launched seven products and announced four additional models. In fiscal year 2024, Ola Electric achieved significant growth, selling 3.29 lakh units compared to 1.56 lakh units sold in the previous year, highlighting the company’s rapid expansion and increasing market presence.
