Ola Electric Mobility Ends 20% Higher After Muted Debut On Exchanges
The initial public offering was subscribed 4.27 times on the final day, led by the portion reserved for employees and qualified institutional investors.
Shares of Ola Electric Mobility Ltd. ended on the National Stock Exchange at Rs 91.2, a premium of 20% over the issue price of Rs 76 per share. On the BSE, the stock closed at Rs 91.1 apiece.
The scrip is listed flat on the NSE at the issue price. On the BSE, the stock debuted at Rs 75.99 per share, marking a discount of 0.01%.
The initial public offering was subscribed to 4.27 times on the final day, led by the portion reserved for employees and qualified institutional investors. The IPO of the electronic scooter manufacturer raised Rs 6,145.6 crore with a fresh issue of 72.4 crore shares and an offer for sale of 8.49 crore shares.
Founder Bhavish Aggarwal offloaded 3.8 crore shares, while investors SoftBank Group Corp. and Tiger Global sold 2.4 crore and 65 lakh shares, respectively.
The company will allocate Rs 1,227.6 crore towards capital expenditure, Rs 800 crore for the repayment of borrowings and Rs 1,600 crore for investment in research and development. Additionally, Rs 350 crore will be earmarked for expenditures aimed at organic growth.
Business
The Bengaluru-based company specialises in electric scooters. It was founded in 2017 and apart from scooters, it also makes certain core components for electric vehicles, such as battery packs, motors, and vehicle frames, at the Ola Future Factory.
The company focusses on developing vertically integrated technology and manufacturing capabilities for EVs and their components, including cells.
