Ola Electric Mobility shares seem to have attracted big interest on the debut, freezing at 20 percent upper circuit on August 9, which was much better than analysts' expectations.
The stock opened flat at Rs 76 and immediately gained strength. It extended gains as the day progressed and hit a day's high of Rs 91.18 many a times during the day. Finally, the stock finished at the same level i.e. Rs 91.18 on the BSE, up 20 percent over the issue price of Rs 76.
The exchange has decided 20 percent upper (Rs 91.18) and lower circuit (Rs 60.80) limits over the opening price, for the stock.
On the NSE, shares closed at Rs 91.20, up 20 percent with a market capitalisation of Rs 40,226 crore.
In terms of volumes, 52.5 crore equity shares of Ola Electric Mobility were traded on the NSE, while 4.75 crore shares changed hands on the BSE.
The Bengaluru-based electric vehicle maker has raised Rs 6,146 crore through its public issue. The offer was subscribed 4.27 times during August 2-6.
The IPO was a combination of fresh issue of Rs 5,500 crore by the company, and an offer-for-sale of 8.49 crore shares worth Rs 645.6 crore by the existing shareholders including founder Bhavish Aggarwal.
The price band for the issue was Rs 72-76 per share.
Ola Electric is going to utilise fresh issue proceeds for the capacity expansion of its cell manufacturing plant from 5GWh to 6.4 GWh, repaying debt, investment into research and product development; and organic growth initiatives.
Ola manufactures electric vehicles (EV) as well as certain core EV components like battery packs, motors and vehicle frames at its Ola Futurefactory. Since the announcement of first product in August 2021, it has delivered seven products and additionally announced four new products. In the fiscal 2024, it sold 3.29 lakh units, increasing sharply from 1.56 lakh units sold in previous year.
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