Ola Electric Shares Surge 18.6% After Stock Market Debut

Ola Electric, led by Bhavish Aggarwal, has made waves in the stock market today as its shares soared by 18.6% on the BSE, trading at Rs 90.17 in afternoon trade. This sharp rise follows the company's initial public offering (IPO) debut, which, despite strong investor demand, started on a muted note.

Initial Trading and Market Capitalization

Ola Electric’s shares listed at Rs 76 on the NSE, matching the issue price but falling short of investor expectations. On the BSE, the stock opened at Rs 75.99, a slight discount of 0.01%. However, the market quickly turned in Ola Electric's favor, pushing its market capitalization to an impressive Rs 39,648.95 crore by the afternoon.

Bhavish Aggarwal's Vision

Expressing his thoughts on this pivotal moment, CEO Bhavish Aggarwal shared his excitement on X (formerly Twitter), stating, "The importance of today, this moment is finally sinking in. It felt like a process till yesterday - where we did our work and put in our time and made India one of the largest EV 2W markets. Our hard work has paid off, and the world recognizes that." He added, "But today it feels like an important duty, a responsibility to double down on our aspirations and to build the country of our dreams. To be dedicated and faithful custodians of public money and faith."

IPO Details and Investor Response

The IPO, which concluded on August 6, saw overwhelming demand, being subscribed 4.26 times. A total of 1.9 billion shares were bid for, against 460 million offered. Retail individual investors subscribed 3.85 times, while non-institutional investors (NIIs) and qualified institutional investors (QIIs) subscribed 2.4 times and 5.3 times, respectively.

The IPO included a fresh issue of Rs 5,500 crore and an offer for sale (OFS) of 84 million shares. Bhavish Aggarwal sold 37.9 million shares as part of the OFS, with investors like Alpha Wave, Alpine, DIG Investment, and Matrix offloading 47.89 million shares.

Book Running Lead Managers

The IPO was managed by a consortium of leading financial institutions, including Kotak Mahindra Capital Company, Bofa Securities India, Axis Capital, SBI Capital Markets, Citigroup Global Markets India, Goldman Sachs Securities, ICICI Securities, and Bob Capital Markets, serving as the book running lead managers.