Ola Electric Mobility Limited, led by Bhavish Aggarwal, saw a significant boost in its stock value on Monday. The company’s shares surged by 20% to ₹109.4 each, hitting the upper circuit limit and extending the gains from their listing day. On the National Stock Exchange (NSE), the stock was trading at this higher price.
The company’s market valuation has reached ₹48,272.1 crore. On Friday, Ola Electric’s shares were initially listed at ₹76 a piece, but quickly rose by 20% to ₹91.20, reaching the upper circuit limit. The company’s initial public offering (IPO), which was open from August 2 to August 6, received a strong response with 4.27 times the subscription.
The IPO had a price band of ₹72 to 76 per share, and it included a fresh issuance of up to ₹5,500 crore along with an Offer-for-Sale (OFS) of approximately 8.5 million equity shares. The company plans to use ₹1,227.6 crore of the funds raised for expanding its cell manufacturing plant’s capacity from 5 GWh to 6.4 GWh.
Additionally, Ola Electric intends to allocate ₹1,600 crore for research and product development, ₹800 crore for debt repayment, and ₹350 crore for growth initiatives. The company’s prospectus also notes that the expansion of its Ola Gigafactory in Tamil Nadu will be funded through internal resources and long-term loans from its subsidiary, Ola Cell Technologies Pvt Ltd.
Ola Electric produces electric vehicles and essential EV components, such as battery packs and motors, at its Ola Future Factory.
