Ola Electric IPO makes tepid debut: Lists at par with issue price of ₹76

Ola Electric IPO is India's biggest so far in 2024 and the first stock offering by a pure-play electric vehicle maker in the country.

Ola Electric Mobility's shares debuted flat as the stock stock listed at 76 rupees on the National Stock Exchange, compared with an offer price of 76 rupees. Ola Electric's $734 million initial public offering, India's biggest so far in 2024 and the first stock offering by a pure-play electric vehicle maker in the country, had drawn about $1.8 billion in bids this week.

Ola Electric IPO: Ola Electric CMD Bhavish Aggarwal addresses the media during the announcement of the company's forthcoming initial public offering (IPO), in Mumbai.(PTI)

The ₹6,154-crore public offering was a combination of new shares and an offer for sale from existing investors. The IPO received robust investor interest and was subscribed 4.27 times. Qualified Institutional Buyers (QIBs) and retail subscribed 5.31 times and 3.92 times their respective allotments while non-institutional investors (high net-worth individuals) bid 2.4 times the shares allocated to them.

The price band for the offer was ₹72-76 a share and under the OFS, Ola Electric founder Bhavish Aggarwal has offloaded almost 3.8 crore shares.

The company plans to utilise ₹1,227.6 crore out of the proceeds of its ₹5,500-crore public issue on capacity expansion of its cell manufacturing plant to 6.4 GWh from 5 GWh and is also looking to use ₹1,600 crore from the fresh fund on research and product development, another ₹800 crore will be deployed to repay debts and ₹350 crore for organic growth initiatives.