Ola Electric Shares Rally 20% To Touch Fresh High

After flat market debut last week, Ola Electric’s shares have continued to rally. On Monday (August 12), the shares of Ola Electric touched a fresh high of INR 109.41 on BSE, 20% higher compared to its previous close.

It is to be noted that the company’s shares on the BSE listed at INR 75.99 apiece as against its IPO issue price of INR 76. On the NSE, its shares opened flat at INR 76 apiece.

However, share prices of Ola Electric rallied during intraday trading on its first trading session itself to end the day at INR 91.18.

The total market cap of the company stands at INR 48,258.89 Cr for the day.

Ola Electric’s 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).

Ola Electric went public with a valuation of $4 Bn, marking a significant 25% reduction from its previous valuation of $5.4 Bn during the last funding round in September 2023.

Initially, the company was aiming for a valuation around $10 Bn for its IPO, a figure that analysts had criticised as unrealistic. The current $4 Bn valuation is also notably lower than the $7 billion target Ola Electric had recently considered.

As per reports, the company lowered its valuation following investor pushback. However, founder Bhavish Aggarwal said at its IPO conference that the decision to price the public issue “attractively” was made to allow the country’s investor community to participate in Ola Electric’s growth story, which presents significant potential for future expansion.

In the financial year 2023-24 (FY24), the company’s 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.