Ola Electric Mobility Surges 20% After IPO Debut

Ola Electric Mobility Ltd, led by Bhavish Aggarwal, witnessed a 20% surge in share prices, hitting the upper circuit limit of Rs 91.20 after listing marginally below its issue price. The IPO raised Rs 6,145 crore and aims to fund expansion and research, with significant plans for its cell manufacturing plant.

Shares of Bhavish Aggarwal-led electric two-wheeler company Ola Electric Mobility Ltd surged 20 per cent, reaching the upper circuit limit against the issue price of Rs 76, after an initial flat note listing on Friday.

The stock debuted at Rs 75.99 on the BSE, slightly down by 0.01 per cent from the issue price, before rebounding to Rs 91.18, marking its upper circuit limit with a 19.97 per cent increase.

Similarly, on the NSE, shares listed at Rs 76 and later soared 20 per cent to Rs 91.20, showcasing a significant comeback.

The company's market valuation has now reached Rs 40,217.95 crore. The Rs 6,145-crore IPO received 4.27 times subscription by the final bidding day on Tuesday.

The share sale, ranging from Rs 72 to Rs 76 per share, included a fresh issue of up to Rs 5,500 crore and an offer-for-sale of up to 8,49,41,997 equity shares.

According to its prospectus, Ola Electric Mobility Ltd will utilize Rs 1,227.6 crore from the Rs 5,500-crore issue for capacity expansion of its cell manufacturing plant from 5 GWh to 6.4 GWh.

Additionally, Rs 1,600 crore will be allocated for research and product development, Rs 800 crore for debt repayment, and Rs 350 crore for organic growth initiatives.

OEML stated in its Red Herring Prospectus that phases 1(a) and 1(b) of setting up and expanding the Ola Gigafactory in Tamil Nadu's Krishnagiri district will be funded through internal accruals and long-term borrowings by its subsidiary, Ola Cell Technologies Pvt Ltd.

A portion of the proceeds will be directed towards capital expenditure for OCT's cell manufacturing capacity expansion from 5 GWh to 6.4 GWh.

(With inputs from agencies.)