Ola Electric logo.
Credit: Reuters Photo
New Delhi: Shares of Bhavish Aggarwal-led electric two-wheeler company Ola Electric Mobility Ltd surged 20 per cent to hit the upper circuit limit on Monday, extending their listing-day rally.
The stock jumped 19.99 per cent to hit the highest trading permissible limit for the day at Rs 109.41 on the BSE.
At the NSE, shares of the firm surged 20 per cent to hit the upper circuit limit of Rs 109.44.
The company's market valuation jumped Rs 8,040.94 crore to reach Rs 48,258.89 crore.
On Friday, its listing day, the shares of Ola Electric Mobility Ltd had surged 20 per cent to hit the upper circuit limit, as against the issue price of Rs 76.
The Rs 6,145-crore initial public offering of Ola Electric Mobility received 4.27 times subscription on the final day of bidding on Tuesday.
The issue was open for subscription from August 2 to August 6. The initial share sale had a price band of Rs 72-76 a share.
The Initial Public Offering (IPO), the first by an electric vehicle maker, had a fresh issue of up to Rs 5,500 crore and an Offer-for-Sale (OFS) of up to 8,49,41,997 equity shares.
According to its prospectus, Ola Electric Mobility Ltd (OEML) plans to utilise Rs 1,227.6 crore out of the proceeds of its Rs 5,500-crore public issue on capacity expansion of its cell manufacturing plant to 6.4 GWh from 5 GWh.
The company is also looking to use Rs 1,600 crore from the fresh fund on research and product development, another Rs 800 crore will be deployed to repay debts and Rs 350 crore for organic growth initiatives.
In its Red Herring Prospectus (RHP), OEML said the Phase 1 (a) and Phase 1 (b) of the set up and expansion of the Ola Gigafactory at Krishnagiri district in Tamil Nadu will be funded from internal accruals and long-term borrowings availed by its arm Ola Cell Technologies Pvt Ltd (OCT).
The company said a portion of the proceeds will be used for capital expenditure to be incurred by OCT for expansion of the capacity of cell manufacturing plant from 5 GWh to 6.4 GWh.
Ola Electric manufactures EVs and certain core EV components like battery packs, motors and vehicle frames at the Ola Futurefactory.