The shares of Ola Electric Mobility Ltd, the pure play EV maker, zoomed 20 per cent to hit the upper circuit on its debut.
The Bhavish Aggarwal-led entity made a slow start at ₹75.99 on the BSE compared with the issue price of ₹76.
But buying interest soon picked up and the counter closed at ₹91.18, the upper circuit limit, a gain of ₹15.19 or 19.99 per cent.
On the NSE, the auto firm opened at the issue price of ₹76 and settled at ₹91.20, up 20 per cent. Close to 4.76 crore shares were transacted on the BSE whereas more than 52.51 crore shares changed hands on the NSE. At the finish, Ola Electric commanded a market valuation of ₹40,217.95 crore on the BSE.
Speaking at the listing ceremony, Aggarwal, chairman and managing director, Ola Electric Mobility Ltd said: ``While entrepreneurs often receive the spotlight, it is the dedicated team and their supportive families who truly deserve the credit.”
“Despite receiving demand well below street expectation, Ola listing well above street expectations can be attributed to market mood,” Prashanth Tapse, senior VP (research), Mehta Equities Ltd, said.
The ₹6,145-crore initial public offer of Ola Electric had received 4.27 times subscription on the final day of bidding. The issue was open for subscription from August 2-6.
The float had a price band of ₹72-76 per share. It comprised fresh issue of up to ₹5,500 crore and an offer-for-sale of up to 8,49,41,997 equity shares.
Ola Electric plans to utilise ₹1,227.6 crore out of the proceeds of the issue on capacity expansion of its cell manufacturing plant to 6.4 GWh from 5 GWh. The company is also looking to use ₹1,600 crore from the fresh fund on research and product development.
