August 9, 2024
New Delhi, India
Ola Electric Shares Surge
Ola Electric made a muted debut on the Indian stock market today, with shares listing at ₹76 apiece on the NSE and ₹75.99 on the BSE, reflecting a flat start compared to the issue price. Despite the initial lackluster performance, the stock saw a notable recovery, surging over 16.5% later in the session.
Key Highlights:
- Listing Details:
- NSE: Ola Electric shares listed at ₹76 apiece, matching the issue price.
- BSE: Shares debuted at ₹75.99, a marginal discount of 0.01% from the issue price.
- Muted Market Expectations:
- The IPO listing met muted expectations, influenced by negative grey market premium (GMP) ahead of the listing.
- Ola Electric’s IPO GMP stood at -4%, indicating bearish sentiment prior to the debut.
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- IPO Overview:
- Public Subscription: The IPO opened on August 2 and closed on August 6.
- Price Band: The price band for the IPO was set between ₹72 to ₹76 per share.
- Funds Raised: The company raised ₹6,145.56 crore, comprising a fresh issue of ₹5,500 crore and an offer for sale (OFS) worth ₹645.56 crore.
- Subscription Response:
- The IPO received a lukewarm response, with an overall subscription of 4.27 times.
- Retail Investors: Subscribed 3.92 times.
- Non-Institutional Investors (NII): Subscribed 2.40 times.
- Qualified Institutional Buyers (QIBs): Subscribed 5.31 times.
- Financial Performance:
- Revenue Growth: Ola Electric’s revenue grew from ₹456.2 crore in FY22 to ₹5,243.2 crore in FY24.
- Net Loss: The company’s net loss widened from ₹784.14 crore to ₹1,584.4 crore during the same period.
- Market Performance Post-Listing:
- Despite the flat listing, Ola Electric’s shares surged by ₹12.51 or 16.53%, reaching ₹88.51 apiece on the BSE later in the day.
- The stock’s recovery indicates positive investor sentiment after the initial subdued response.
Ola Electric’s stock market debut began on a flat note, reflecting the cautious market sentiment surrounding the IPO. However, the significant recovery post-listing demonstrates investor confidence in the company’s long-term prospects despite the initial concerns. The EV maker’s impressive revenue growth, despite widening losses, may have contributed to the late-session rally.
Disclaimer:
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