Ola Electric Shares Surge 20% on Market Debut

Ola Electric Mobility Ltd.’s shares soared 20% above the issue price on their market debut, with strong IPO subscription and strategic allocation of funds for growth and development.

Key Points

• Ola Electric Mobility Ltd.’s shares jumped 20% above their issue price on their debut.
• The IPO was significantly oversubscribed, with a final subscription rate of 4.27 times.
• The company raised Rs 6,145.6 crore through the IPO, including both fresh issues and offer for sale.
• Major shareholders like SoftBank and Tiger Global reduced their stakes, while founder Bhavish Aggarwal sold a significant number of shares.
• The funds raised will be used for capital expenditure, debt repayment, R&D, and organic growth initiatives.

Ola Electric Mobility Ltd. made a notable entrance on the stock market, with shares closing at Rs 91.2 on the National Stock Exchange, reflecting a robust 20% premium over the issue price of Rs 76 per share. On the Bombay Stock Exchange, the stock ended at Rs 91.1, also showing a significant gain from its debut price.

The shares began trading flat on the NSE, matching the issue price of Rs 76, while on the BSE, they opened slightly lower at Rs 75.99, indicating a marginal discount. The initial public offering (IPO) was met with strong demand, with a subscription rate of 4.27 times on the final day, driven particularly by the employee and institutional investor segments.

Ola Electric’s IPO raised an impressive Rs 6,145.6 crore, comprising a fresh issue of 72.4 crore shares and an offer for sale of 8.49 crore shares. Among the sellers were founder Bhavish Aggarwal, who offloaded 3.8 crore shares, and major investors such as SoftBank Group Corp. and Tiger Global, who sold 2.4 crore and 65 lakh shares, respectively.

The company plans to use the proceeds from the IPO for several strategic purposes: Rs 1,227.6 crore will be directed towards capital expenditure, Rs 800 crore will be allocated for repaying borrowings, and Rs 1,600 crore will support research and development. Additionally, Rs 350 crore is earmarked for initiatives aimed at fostering organic growth, underscoring Ola Electric’s commitment to advancing its operations and market presence.