Ola Electric Mobility shares made a robust stock exchange debut on Friday 9 August, soaring 20 percent over the IPO allotment price to hit the upper circuit during the day, after a strong oversubscription to the public issue.
At 12.40 pm, Ola Electric stock was locked in the upper circuit at Rs 91.2 per share on NSE, up 20 percent from Rs 76 IPO price.
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The Rs 6,154-crore public offering, a combination of new shares and an offer for sale from existing investors, received robust investor interest. The issue was subscribed 4.27 times.
Both Qualified Institutional Buyers (QIBs) and retail investors showed strong interest, subscribing 5.31 times and 3.92 times their respective allotments on August 6. Non-institutional investors (high net-worth individuals) bid 2.4 times the shares allocated to them.
Employees also demonstrated robust participation, purchasing 11.99 times the reserved portion. The electric vehicle maker has set aside shares worth Rs 5.5 crore for its employees, who will receive them at a discount of Rs 7 per share to the final issue price.
Ola Electric, which also produces key EV components like battery packs, motors, and vehicle frames at its Ola Futurefactory, plans to invest Rs 1,227.64 crore to expand its cell manufacturing plant's capacity from 5 GWh to 6.4 GWh. Additionally, the company will allocate Rs 800 crore for debt repayment, Rs 1,600 crore for research and product development, and Rs 350 crore for organic growth initiatives.
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