Ola Electric IPO Goes Live With 19.97 Per Cent Jump

Ola Electric made its debut at the Bombay Stock Exchange (BSE)  with its IPO today. The electric vehicle manufacturer's stock price surged an impressive 19.97 per cent above its initial public offering (IPO) price, hitting the upper circuit and maintaining its charge throughout the day.

By midday trading, Ola Electric's stock was locked at ₹91.2 per share on the National Stock Exchange (NSE), a significant leap from its IPO price of ₹76. This bullish performance follows a heavily oversubscribed public issue, signalling strong market enthusiasm for the EV sector.

The company's ₹6,154 crore IPO, which included fresh shares and an offer for sale from existing investors, garnered substantial interest across investor categories. The issue was oversubscribed 4.27 times, with Qualified Institutional Buyers (QIBs) and retail investors leading the charge at 5.31 and 3.92 times their respective allocations.

Ola Electric, known for its end-to-end approach in EV manufacturing – from battery packs to motors and vehicle frames – has ambitious plans for its IPO proceeds. The company intends to invest ₹1,227.64 crore to boost its cell manufacturing capacity from 1.4 GWh to 5 GWh at its state-of-the-art Ola Futurefactory by the end of October and up to 6 GWh by the following year. Additional funds will be allocated for debt repayment (₹800 crore), research and product development (₹1,600 crore), and organic growth initiatives (₹ 350 crore).

Moreover, the Bengaluru-based EV maker plans to launch its first electric motorcycle on the eve of the 78th Independence Day this August 15. Ola's CEO Bhavish Aggarwal has already teased the upcoming electric bike, the latest being a pixelated image. However, on the other hand, Ola reported a net loss of ₹1,584 crore in the last financial year despite registering a revenue of ₹5,009.83 crore during the same period. And while the oversubscription is a positive indicator, investors would be keenly observing the company's post-IPO performance and how well it executes its plans.