Ola Electric Mobility’s shares saw strong debut interest on August 9, hitting the 20% upper circuit limit and closing at Rs 91.18, surpassing analysts’ expectations. The stock initially opened at Rs 76, gained momentum throughout the day, and frequently reached a high of Rs 91.18 before finishing at that level on the BSE, marking a 20% increase from the issue price.
The exchange set the upper circuit limit at Rs 91.18 and the lower circuit at Rs 60.80. On the NSE, the shares closed at Rs 91.20, also up 20%, with a market capitalization of Rs 40,226 crore. Trading volumes were significant, with 52.5 crore shares exchanged on the NSE and 4.75 crore on the BSE.
Ola Electric Mobility raised Rs 6,146 crore through its public issue, which was oversubscribed by 4.27 times between August 2-6. The IPO comprised a fresh issue of Rs 5,500 crore and an offer-for-sale of 8.49 crore shares worth Rs 645.6 crore by existing shareholders, including founder Bhavish Aggarwal. The price band for the issue was Rs 72-76 per share.
The proceeds from the fresh issue will be used for expanding the cell manufacturing plant capacity from 5GWh to 6.4GWh, debt repayment, and investment in research, product development, and growth initiatives. Ola Electric produces electric vehicles and core EV components at its Ola Futurefactory and has significantly increased its sales, delivering 3.29 lakh units in fiscal 2024, up from 1.56 lakh units the previous year.
