Ola Electric Makes Flat Debut on D-Street, Lists at ₹76 on NSE

9 Aug 2024 , 09:52 AM

Shares of Ola Electric Limited made their debut on D-Street, listing at par with the issue price of ₹76 on the National Stock Exchange (NSE). The much-anticipated initial public offering (IPO) of the electric vehicle (EV) manufacturer received a robust response, being subscribed 4.27 times, largely driven by interest from qualified institutional buyers and retail investors.

The IPO was open for bidding between August 2 and August 6, offering shares within a fixed price band of ₹72-76 per share. Investors were required to bid for a minimum lot size of 195 shares.

Ola Electric successfully raised ₹6,146 crore through the IPO. This capital raise included a fresh issue of shares worth ₹5,500 crore, as well as an offer-for-sale (OFS) of up to 8.49 crore shares by existing shareholders.

The company has earmarked ₹1,600 crore from the net proceeds for investment in research and development, underscoring its commitment to innovation in the rapidly evolving EV sector.

As a key player in India’s electric vehicle landscape, Ola Electric has developed integrated technology and manufacturing capabilities for EVs and core EV components. The company has already introduced seven products and has announced four more in its pipeline. As of March 31, 2024, Ola Electric operates through an omnichannel distribution network comprising 870 experience centers and 431 service centers, alongside its online platform.

Despite its strong market presence, Ola Electric has been grappling with financial losses. The company reported a loss of ₹1,584 crore in the financial year 2024, an increase from the ₹1,472 crore loss incurred in the previous fiscal year.