After muted listing, Ola Electric revs up to hit the 20% roof


Shares of Ola Electric Mobility saw a strong opening day at the bourses despite getting a flat listing on Friday. The stock listed at the issue price itself at ₹76 but gathered steam to close at day’s high of ₹91.20 — up 20 per cent over the IPO price on the NSE. The stock, after listing at ₹75.99 on the BSE, jumped 19.97 per cent to end at the upper circuit at ₹91.18.

The public issue of Ola Electric Mobility, the first pure EV company to hit the capital market, saw a moderate response 4.27 times, with qualified institutional investors and retail investors showing more interest, as their respective portions were subscribed 5.31 times and 3.92 times. However, HNIs (non-institution investors) remained muted, as their reserved portion received bids of 2.40 times.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said Ola listed well above Street expectations due to overall positive market mood. “Post listing, the short-term view remain same due to weak financials and risk of negative cash flows in future. Considering all the factors, we advise only risk taking investors to continue to hold with a minimum holding period of 2-3 years,” he said.

The ₹6,145.6-crore IPO, that came out with a price band of ₹72-76, comprised a fresh issue of ₹5,500 crore and an offer-for-sale (OFS) of ₹645.60 crore. Earlier, as part of the IPO, Ola had mobilised ₹2,763 crore from anchor investors.

Utility of funds

Funds raised will be used for expansion of the installed capacity of the Ola Giga factory from 5GWh to 6.4GWh; repayment or pre-payment, in full or in part, of Ola Electric Technologies, its material subsidiary, working capital borrowings; investment in research and product development, including investments in property, plant and equipment and intangible assets; organic growth initiatives; and general corporate purposes.

Ola Electric Mobility is a pure EV player in India and is building vertically integrated technology and manufacturing capabilities for EVs and EV components, including cells. It manufactures EVs and certain core EV components like battery packs, motors and vehicle frames at the Ola Future factory.



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