Ola Electric share price extends listing day gains to hit 20% upper circuit; stock surpasses ₹100-mark

Ola Electric share price has been locked in 20% upper circuit for the second consecutive session on Monday's session continuing its upward trend from Friday. Ola Electric share price surpassed the mark of ₹100 today. Ola Electric stock price opened at ₹97.21 apiece on BSE, the stock touched an intraday high of ₹109.41 and a low of ₹95.28 per share.

Ola Electric Mobility share price increased on Friday due to high investor demand and the nation's expanding use of electric cars. The largest e-scooter manufacturer in India ended 20% over the maximum permitted price of ₹91.20, which was more than the ₹76 per share initial public offering price.

Ola Electric share price on Friday debuted at ₹75.99, a 0.01% down from the issue price on the BSE. The stock recovered rapidly, rising 19.97% to ₹91.18, the upper circuit limit. The company's shares were listed on the NSE at the issue price of ₹76. Afterwards, the stock made a stunning 20% return, rising to ₹91.20, its upper circuit limit.

"Despite receiving demand well below street expectation, Ola Electric share price listed on a flat rate, the fear of discounted listing was out of woods and huge buying was seen post listing. The long term story is intact and markets are focusing on news that Ola Electric Bike to Launch in India on August 15. Considering all the factors, we advise only risk taking investors to continue to hold with a minimum holding period of 2-3 years and recommend to accumulate on every dip to be part of long term journey," said Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities.

On the last day of bidding on Tuesday, Ola Electric Mobility's ₹6,145-crore initial public offer drew 4.27 times as many subscriptions. Subscriptions for the issue were accepted from August 2 through August 6. The price band for the initial share sale was ₹72–76 per share.

An offer for sale (OFS) of up to 8,49,41,997 equity shares and a fresh issue of up to ₹5,500 crore were included in the initial public offering (IPO) by the electric vehicle manufacturer.

From the proceeds of its ₹5,500-crore public offering, Ola Electric Mobility Ltd intends to use ₹1,227.6 crore to expand the capacity of its cell manufacturing facility from 5 GWh to 6.4 GWh. From the fresh fund, the business plans to use ₹1,600 crore for product development and research, ₹800 crore for debt repayment, and ₹350 crore for organic growth efforts.

According to company's Red Herring Prospectus (RHP), internal accruals and long-term borrowings made available by its subsidiary Ola Cell Technologies Pvt Ltd (OCT) would finance Phases 1 (a) and 1 (b) of the establishment and expansion of the Ola Gigafactory in the Krishnagiri district of Tamil Nadu.

An exchange filing stated that Ola Electric Mobility's board meeting is scheduled to be held on Wednesday, August 14, 2024, inter alia, to consider and approve the unaudited standalone and consolidated financial results of the company for the quarter ended June 30, 2024.

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