Ola Electric made a flat entry on bourses. The company's share was listed at Rs 76 on the National Stock Exchange. This trading price matched the initial public offering (IPO) issue price. The debut price of the stock was at Rs 75.99, on the Bombay Stock Exchange.
In the grey market, the shares were being traded at Rs 73. The term "grey market" refers to an unofficial exchange where stocks and items are traded outside of regulated markets. Ola Electric’s IPO was open for bidding from August 2 to August 6 with a price range of Rs 72-76. The lot price of the share was 195 shares.
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Prashanth Tapse, senior VP (research), Mehta Equities, says, "Despite receiving demand well below street expectations, OLA listed well above expectations, which can be attributed to the market mood. Post-listing, the short-term outlook remains cautious due to weak financials and the risk of negative cash flows in the future. Allotted investors should be aware of the risks before holding, as this could adversely impact its consolidated financial condition after listing."
Tapse adds that given all the considerations, "We recommend that only risk-tolerant investors maintain their holdings for at least 2-3 years.The long-term story is intact, but we may see a lot of ups and downs in the short term."
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Ola Electric raised Rs 6,145.56 crore, including Rs 5,500 crore from new shares and an offer-for-sale of up to 8,49,41,997 shares. The IPO was oversubscribed by 4.27 times. Qualified institutional investors and retail investors subscribed 5.31 times and 3.92 times their allocated shares, respectively. On the other hand, the portion of high-net-worth individuals (HNIs) was subscribed 2.40 times.
The employee allocation was oversubscribed by 11.66 times compared to the number of shares set aside for them. As of 12:36 pm, the stock of Ola Electric was trading at Rs 90.86 on NSE. This is a 19.55 per cent jump from the opening price.
The stock of Ola Electric Mobility is listed at Rs 76 today on the NSE. This trading price matched the initial public offering (IPO) issue price. In BSE, the debut price of the stock was at Rs 75.99.
