During the open auction from August 2 to August 6, the stock was available for bidding at INR 72-76 per share.
Ola Electric Mobility’s shares experienced a remarkable surge on their debut, reaching the upper circuit limit of 20% at INR 91, despite starting the day on a quieter note. The company’s IPO, valued at INR 6,146 crore, marked the largest in India over the past two years. The significant closing boost, which elevated the market capitalization to slightly more than INR 40,200 crore (nearly USD 4.8 billion), took market participants by surprise. The offering, which ran from August 2 to 6, was priced at INR 72-76 per share.
Market insiders noted that the non-institutional segment of Ola Electric’s IPO, targeted at high-net-worth investors, did not attract the expected level of interest during the subscription period. While smaller IPOs often see high subscription rates from these investors, Ola Electric’s offering was only subscribed 2.4 times.
The stock’s listing on Friday morning saw a rush of high-net-worth investors attempting to sell their shares, which initially depressed the stock price. However, following this early sell-off, long-term investors entered the market, driving the price up to the upper circuit limit where it closed. This dynamic left many market analysts and players surprised.
Arun Kejriwal, the director of KRIS, an investment advisory services firm, remarked that Ola’s performance post-listing was unexpectedly strong. The 20% gain on its debut day surpassed all predictions, making the stock a key focus for investors in the near term.
