Ola Electric Mobility made its debut on the stock market at ₹76 per share, matching its IPO issue price. The listing comes after the IPO received a decent response from market participants, being subscribed 4.27 times, mainly driven by interest from qualified institutional buyers and retail investors.
Market Performance
- IPO Subscription: The IPO was open for bidding from August 2 to August 6, with shares offered at a fixed price band of ₹72-76 per share. The issue was well-received, leading to an overall subscription of 4.27 times.
- Listing Price: Despite a Grey Market Premium (GMP) of ₹-3, which indicated a potential listing at ₹73 (a 4% discount), the stock listed at ₹76, the upper end of its price band, reflecting stability at the issue price.
- Capital Raised: Ola Electric raised ₹6,146 crore from the IPO. This included ₹5,500 crore from fresh share issuance and ₹646 crore from an offer-for-sale (OFS) of up to 8.49 crore shares.
Use of Funds
The company plans to allocate ₹1,600 crore of the proceeds towards research and development (R&D). However, Ola Electric has noted the inherent risks involved, cautioning that the investments may not result in tangible assets or anticipated outcomes.
Business Overview
Ola Electric is a prominent player in the Indian electric vehicle (EV) sector with integrated technology and manufacturing capabilities. The company has delivered seven EV products and announced four new ones, supported by a robust omnichannel distribution network that includes 870 experience centers and 431 service centers as of March 31, 2024.
Financial Performance
The company has been operating at a loss, reporting a loss of ₹1,584 crore in FY24, up from ₹1,472 crore in FY23. Despite the losses, the company’s growth potential in the rapidly expanding EV market has garnered significant interest from investors.
