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Ola Electric Mobility’s shares experienced a strong debut on August 9, hitting the 20% upper circuit limit and closing at Rs 91.18, prominently exceeding analysts’ predictions. The stock opened flat at Rs 76 but quickly gained traction throughout the trading day. It reached a peak of Rs 91.18 multiple times before finishing at the same level on the Bombay Stock Exchange (BSE), marking a 20% increase from the issue price.
The National Stock Exchange (NSE) recorded a closing price of Rs 91.20, also up by 20%, with a market capitalization of Rs 40,226 crore. The BSE saw 4.75 crore shares traded, while the NSE recorded a higher volume of 52.5 crore shares.
Ola Electric Mobility’s public issue raised Rs 6,146 crore, with the offer subscribed 4.27 times between August 2 and 6. The initial public offer comprised a fresh issue of Rs 5,500 crore and an offer-for-sale of 8.49 crore shares valued at Rs 645.6 crore by existing shareholders, including founder Bhavish Aggarwal. The issue was priced between Rs 72 and Rs 76 per share.
Proceeds from the fresh issue will be used to expand the cell manufacturing plant’s capacity from 5GWh to 6.4GWh, repay debt, and fund research, product development, and growth initiatives. Ola Electric, based in Bengaluru, manufactures electric vehicles (EVs) and key EV components such as battery packs, motors, and frames. Since unveiling its first product in August 2021, the company has delivered seven products and announced four additional ones as well. In fiscal 2024, it sold 3.29 lakh units, which is a remarkable increase from the previous year’s 1.56 lakh units.