Ola Electric's Market Debut: A Rollercoaster Ride

Ola Electric Mobility Ltd had a mixed stock market debut, initially listing flat but later witnessing a significant 11% jump in share prices. The Rs 6,145-crore IPO was subscribed 4.27 times. The company plans to use the proceeds for various expansions and research projects.

Ola Electric Mobility Ltd had a mixed start in the stock market on Friday, listing flat before ultimately soaring nearly 11% above its issue price. Initially, the stock priced at Rs 76 opened at Rs 75.99, dipping marginally by 0.01%. However, it later surged to Rs 84.14 on the BSE.

At the NSE, the shares debuted at par with the issue price but later climbed 10.80% to Rs 84.21. The company's market valuation reached Rs 36,742.21 crore during early trade. Spearheaded by Bhavish Aggarwal, the Rs 6,145-crore initial public offering (IPO) for Ola Electric was subscribed 4.27 times by the end of the bidding period on Tuesday.

This marks the first IPO by an electric vehicle maker. Proceeds are earmarked for several initiatives including capacity expansion, research, product development, debt repayment, and organic growth. The company plans to boost its cell manufacturing plant's capacity from 5 GWh to 6.4 GWh, with the expansion funded through internal accruals and long-term borrowings by its arm Ola Cell Technologies Pvt Ltd.

(With inputs from agencies.)