Ola Electric share price makes a muted debut as stock lists flat at ₹76 apiece on NSE

Ola Electric share price made a tepid debut on the Indian stock market today as the stock was listed flat as compared to the issue price. Ola Electric shares were listed at ₹76 apiece on the NSE as against its issue price of ₹76 per share.

On BSE, Ola Electric shares were listed with a discount of 0.01% at ₹75.99 apiece.

Ola Electric IPO listing was slightly better than the expectations. This is because the Ola Electric IPO GMP today, or grey market premium today, was in negative figures ahead of the IPO listing, according to stock market experts. Ola Electric IPO GMP was (minus) -4%.

Shivani Nyati, Head of Wealth, Swastika Investmart Ltd noted that Ola Electric Mobility Ltd., the company, known for its aggressive expansion plans and technological ambitions, faces a challenging market sentiment reflected in a negative GMP of -3%.

This underwhelming response follows a moderate subscription of 4.45 times, indicating tepid investor enthusiasm.

“Ola Electric's vision to become a global EV leader, backed by significant investments in R&D and manufacturing, is commendable. However, the company's current financial performance, marked by consistent losses, raises concerns. High competition, pricing pressures, and employee attrition further add to the challenges. While the company's foray into the broader EV ecosystem, including batteries, holds promise, the path to profitability remains uncertain,” Nyati said.

Ola Electric IPO Details

Ola Electric Mobility IPO opened for public subscription on August 2 and concluded on August 6. The IPO allotment was fixed on August 7 and the IPO listing date is August 9.

Ola Electric IPO price band was set at ₹72 to ₹76 per share. The EV maker raised ₹6,145.56 crore from the book-built issue which was a combination of fresh issue of 72.37 crore equity shares amounting to ₹5,500 crore and offer for sale (OFS) of 8.49 crore shares worth ₹645.56 crore.

Ola Electric IPO Subscription

Ola Electric IPO received lukewarm response from investors as compared with other IPOs. The issue was subscribed 4.27 times in total as it received bids for 198.79 crore equity shares as against 46.51 crore shares on the offer, according to subscription data on NSE.

The public issue was booked 3.92 times in the Retail Individual Investors (RIIs) category and 2.40 times in the Non Institutional Investors (NII) category. The Qualified Institutional Buyers (QIBs) portion received 5.31 times subscription.

About Ola Electric Mobility

Ola Electric is a pure EV player in India and is building vertically integrated technology and manufacturing capabilities for EVs and EV components, including cells. The company manufactures EVs and certain core EV components like battery packs, motors, and vehicle frames at the Ola Futurefactory.

On the financial front, The company’s revenue grew from ₹456.2 crore to ₹5,243.2 crore between FY22 and FY24, while net loss widened from ₹784.14 crore to ₹1,584.4 crore during the same period.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.