Ola Electric has become the first Indian electric vehicle firm to be listed on Dalal Street.
What Happened: The shares of the Bengaluru-based firm saw a flat listing on bourses on Friday. On NSE, the stock was listed at ₹76, against expectations of a discounted listing. On BSE, Ola Electric was listed at ₹75.99. At the time of publishing, shares of the company had reached a high of ₹90.30 on the first day.
The Ola Electric IPO, which closed its subscription on August 6, was oversubscribed by 4.27 times. On August 8, the grey market premium (GMP) for Ola’s shares dropped to a negative ₹3, suggesting a potential listing price of ₹73.
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The EV two-wheeler maker raised a total of ₹6,145.56 crore from its IPO, which included a fresh share sale of ₹5,500 crore and an offer-for-sale (OFS) up to 8,49,41,997 shares.
The company, which counts SoftBank and Temasek among its investors, primarily manufactures electric vehicles and certain core components for electric vehicles such as battery packs, motors, and vehicle frames at the Ola Futurefactory.
Ola Electric plans to use the net proceeds from the IPO to fund several key areas including the expansion of its subsidiary OCT’s cell manufacturing plant from 5 gigawatt hours to 6.4 gigawatt hours, repaying or prepaying unit Ola Electric Technologies' debt, investing in research and product development, supporting organic growth initiatives and covering general corporate expenses.
Price Action: Ola Electric was trading 16.64% higher at ₹88.65 on Friday morning.
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