Following a significant oversubscription to the public offering, Ola Electric Mobility shares made a good stock market debut on Friday, August 9, rising 16 percent above the IPO allotment price.
Ola Electric’s stock was up 16.45 percent from its IPO price of Rs 76 to Rs 88.5 per share on the NSE at 10:45 a.m.
Strong investor interest was shown in the Rs 6,154-crore public offering, which consisted of both new shares and an offer to sell from current investors. There were 4.27 subscriptions to the issue.
On August 6, qualified institutional buyers (QIBs) and individual investors subscribed at rates of 5.31 and 3.92 times, respectively, indicating high demand. High-net-worth individuals who are not institutional investors place bids that are 2.4 times greater than the shares allotted to them.
Workers showed strong involvement as well, buying 11.99 times the amount that was reserved. Employees of the electric vehicle manufacturer would receive shares valued at Rs 5.5 crore at a discount of Rs 7 per share to the final issue price.
Ola Electric is to invest Rs 1,227.64 crore to increase the capacity of its cell production plant from 5 GWh to 6.4 GWh. Ola Electric also produces important EV components at its Ola Future factory, including battery packs, motors, and vehicle frames. The business would also set aside Rs 800 crore for debt repayment, Rs 1,600 crore for R&D and product development, and Rs 350 crore for efforts aimed at organic growth.