Ola Electric Mobility Share Price start with a 20% Surge and Ola Electric Mobility, backed by SoftBank, made an impressive market debut on Friday, surging by 20% to reach ₹91.18, significantly above its issue price of ₹76. This strong performance was achieved despite initial market expectations and a flat opening at ₹75.99, slightly below the issue price by 0.01%.
Ola Electric’s IPO: Key Highlights
The company launched a ₹6,145-crore Initial Public Offering (IPO), which marked the first for an electric vehicle manufacturer in India. The IPO saw a solid response, being oversubscribed by 4.27 times by the final day of bidding on August 6. The price band for the IPO was set between ₹72-76 per share, consisting of a fresh issue of up to ₹5,500 crore and an Offer-for-Sale (OFS) of up to 8,49,41,997 equity shares.
Market Response and Analysis
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., attributed Ola Electric’s strong listing to the overall market sentiment, despite the demand falling below street expectations. The company’s market valuation has now reached an impressive ₹40,217.95 crore.
Ola Electric: Market Leader in Electric Scooters
With a commanding 39% market share, Ola Electric has rapidly established itself as the leader in the Indian electric scooter market within just three years of launching its first model. Despite robust revenue growth, the company is yet to turn profitable. For the fiscal year ending March 2024, Ola Electric reported a 90% increase in sales compared to the previous year, although its losses also widened by 8%.
Strategic Investments for Future Growth
Ola Electric plans to allocate ₹1,227.6 crore from the IPO proceeds to expand the capacity of its cell manufacturing plant from 5 GWh to 6.4 GWh. Additionally, ₹1,600 crore will be used for research and product development, ₹800 crore for debt repayment, and ₹350 crore for organic growth initiatives. The company’s Red Herring Prospectus (RHP) details that the expansion of its Gigafactory in Tamil Nadu will be funded through internal accruals and long-term borrowings by its subsidiary, Ola Cell Technologies Pvt Ltd (OCT).
Path to Profitability
Ola Electric’s long-term strategy focuses on producing its own battery cells, which is expected to reduce costs and improve profitability. The company aims to begin commercial production of battery cells by early 2025, positioning itself for sustainable growth in the competitive electric vehicle market.
Ola Electric Mobility Market Overview
On the same day, the BSE benchmark index rose by 819.69 points or 1.04% to close at 79,705.91, while the NSE Nifty gained 250.50 points or 1.04% to settle at 24,367.50.
Ola Electric Mobility Share Price Today
Ola Electric Market Share Price is 91.20 Rupees 1 day.