Shares of Ola Electric rallied as high as INR 91.18, up almost 20% from its listing price of INR 76, on the BSE
Its market cap stands at $4.72 Bn
The E2W maker’s public issue comprised a fresh issue of shares worth INR 5,500 Cr and an OFS component of 8.49 Cr shares and led the EV manufacturer to raise over INR 6,145.6 Cr in total
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After making a flat debut on the bourses today (August 9), share prices of electric two wheeler maker Ola Electric rallied during intraday trading on its first trading session.
Shares of Ola Electric rallied as high as INR 91.18, up almost 20% from its listing price of INR 76, on the BSE. It is pertinent to note that the shares opened at INR 75.99 on its first trading session. The company’s market cap stands at $4.72 Bn (INR 39,675.41 Cr).
The company’s listing comes three days after it closed its initial public offering (IPO). The public issue was oversubscribed 4.27X on the final day of bidding, receiving bids for 198.79 Cr shares as against 46.51 Cr equity shares on offer.
The issue comprised a fresh issue of shares worth INR 5,500 Cr and an OFS component of 8.49 Cr shares and led the EV manufacturer to raise over INR 6,145.6 Cr in total.
The startup filed its IPO draft papers with the SEBI in December 2023. Initially, the public issue comprised a fresh issue of shares worth INR 5,500 Cr and OFS component of up to 9.51 Cr shares. However, the OFS amount was lowered in its red herring prospectus (RHP).
On Ola Electric’s IPO, Prashanth Tapse, Senior VP (Research), Mehta Equities, said that it listed well above street expectations due to market mood.
“Post listing the short term view remain same due to weak financials and risk of negative cash flows in future and allotted investors should understand the risk before holding which could adversely impact its consolidated financial condition post listing. Considering all the factors, we advise only risk taking investors to continue to hold with a minimum holding period of 2-3 years,” he said
However, Ola Electric has listed when its losses are deepening. In the financial year 2023-24 (FY24), its net loss widened 7.6% to INR 1,584.4 Cr from INR 1,472.1 Cr in the previous year. However, operating revenue also jumped over 90% to INR 5,009.8 Cr during the year under review from INR 2,630.9 Cr in FY23.
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