Ola Electric Mobility Stock Hits Consecutive Upper Circuit Despite Flat Listing
The EV player stock gains 44 per cent in the two trading sessions
The share price of recently listed electric vehicle (EV) firm, Ola Electric Mobility rose as much as 20 per cent to hit the upper circuit in the Monday trading session.
In the Monday trading session, Ola Electric Mobility stock 20 per cent upper circuit at Rs 109.44 in the morning session on the National Stock Exchange (NSE).
The Rs 6,145.56 crore IPO consisted of fresh issues of up to Rs 5,500 crore and an offer-for-sale (OFS) worth Rs 645.56 crore with the price band for the issue was fixed at Rs 72 to 76 per share.
However, the issue debuted flat on Friday at Rs 76 on account of weak subscription rate. The qualified institutional buyer (QIB) portion was the most subscribed portion at 5.31 times. The retail portion and non-institutional investors (NII) portion followed, being subscribed 3.85 times and 2.39 times respectively.
Ola intended to utilise the proceeds of Rs 5,500 crore towards capital expenditure of its subsidiary, OCT for expansion of the capacity of its cell manufacturing plant.
Additionally the funds will also be used for prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the company and general corporate purposes.
The firm registered revenue of Rs 5,243 crore in FY24, compared to Rs 2,782 crore in FY23. However, the firm’s profit after tax (PAT) decreased to Rs 1,584 crore in FY24 compared to Rs 1,472 crore in FY23. Overall, revenue increased by 88.42 per cent, whereas PAT fell 7.63 per cent.
Notably, the company is running into losses at the operating level itself, though the extent of loss margins are reducing (25.3 per cent in FY24 from 47.6 per cent in FY23).
Despite these odds, the EV player stock gained 44 per cent in the two trading sessions.
