Ola Electric debuts flat on NSE at ₹76/share
What's the story
Ola Electric Mobility, a key player in India's electric vehicle (EV) sector, made an uneventful debut on the National Stock Exchange (NSE) today. The company's stocks were listed at ₹76 each, identical to their issue price. On the Bombay Stock Exchange (BSE), the shares were introduced with a slight discount of 0.01% at ₹75.99 per stock. This follows the company's initial public offering (IPO), which was moderately oversubscribed by 4.45 times despite a negative grey market premium (GMP) of -4%.
Market response
IPO performance and market reception
The IPO of Ola Electric was met with a lukewarm response from investors. The public issue saw a subscription of 3.92 times in the Retail Individual Investors (RIIs) category, and 2.40 times in the Non-Institutional Investors (NII) segment. The Qualified Institutional Buyers (QIBs) portion received a slightly higher subscription at 5.31 times, indicating mixed investor sentiment toward the company's market debut.
Financial outlook
Financial performance and future prospects
Despite its ambitious expansion plans and technological aspirations, Ola Electric's financial performance has been marked by consistent losses. The company's revenue rose from ₹456.2 crore to ₹5,243.2 crore between FY22 and FY24, while its net loss ballooned from ₹784.14 crore to ₹1,584.4 crore during the same period. These figures highlight the financial challenges faced by the firm in its pursuit of becoming a global EV leader.
IPO specifics
IPO details and funds raised
Ola Electric's IPO was open for public subscription from August 2 to August 6, with the allotment finalized on August 7 and listing today. The IPO price band was set at ₹72 to ₹76 per share. Through this IPO, Ola Electric successfully raised ₹6,145.56 crore from a book-built issue, which comprised a fresh issue of 72.37 crore equity shares amounting to ₹5,500 crore, and an offer for sale (OFS) of 8.49 crore stocks worth ₹645.56 crore.