Ola Electric’s share price had a subdued start on the Indian stock exchange today as the stock was unchanged from the issue price. Ola Electric’s shares were trading at ₹76 per share on the NSE compared to the issue price of ₹76 per share.
On the BSE, Ola Electric shares traded at a discount of 0.01% at ₹75.99 each.
Ola Electric’s IPO performance was slightly better than expected. This is because today’s Ola Electric IPO GMP or today’s grey market premium before the IPO was negative, according to stock market experts. Ola Electric IPO GMP was (minus) -4%.
Shivani Nyati, Asset Manager at Swastika Investmart Ltd, noted that Ola Electric Mobility Ltd., known for its aggressive expansion plans and technological ambitions, is facing a challenging market sentiment, reflected in a negative GMP of -3%.
This disappointing reaction follows a moderate subscription rate of 4.45, which suggests cautious enthusiasm among investors.
“Ola Electric’s vision to become a global leader in electric vehicles, supported by significant investments in R&D and manufacturing, is commendable. However, the company’s current financial performance, marked by sustained losses, is a cause for concern. High competition, pricing pressure and employee turnover further exacerbate the challenges. While the company’s foray into the broader electric vehicle ecosystem, including batteries, is promising, the path to profitability remains uncertain,” Nyati said.
Details of Ola Electric IPO
Ola Electric Mobility’s IPO opened for public subscription on August 2 and closed on August 6. The allotment of IPO shares was finalized on August 7 and the IPO is listed on August 9.
The price for the IPO of Ola Electric was set at ₹72 to ₹76 per share. The EV manufacturer collected ₹6,145.56 Crore from the Book-Bought Issue, which is a combination of the fresh issue of 72.37 Crore equity shares valued at ₹5,500 crore and offer for sale (OFS) of 8.49 crore shares worth ₹645.56 Crores.
Ola Electric IPO Subscription
Ola Electric’s IPO received a lukewarm response from investors as compared to other IPOs. The issue was subscribed a total of 4.27 times as bids were received for 198.79 crore equity shares against 46.51 crore shares on offer, as per the NSE subscription data.
The public issue was booked 3.92 times in the Private Retail Investors (RIIs) category and 2.40 times in the Non-Institutional Investors (NII) category. The Qualified Institutional Buyers (QIBs) portion was subscribed 5.31 times.
About Ola Electric Mobility
Ola Electric is a pure-play 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 components such as battery packs, motors and vehicle frames at the Ola Futurefactory.
In financial terms, the company’s turnover increased from ₹456.2 crore on ₹5,243.2 crore between FY22 and FY24, while the net loss of ₹784.14 crore on ₹1,584.4 crore during the same period.
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