Mumbai August 9 2024: Ola Electric Mobility Ltd.’s shares surged in their Mumbai debut on Friday, backed by strong investor demand amid growing adoption for electric vehicles in the country.
The shares of India’s biggest e-scooter maker rose as much as 11% over the initial public offer price of 76 rupees apiece.
Backed by SoftBank Group Corp. and Tiger Global Management LLC, Ola raised about $733 million via its offering, the country’s largest since state-run Life Insurance Corp of India’s $2.7 billion share sale in 2022.
Ola’s listing adds to India’s busy IPO market. New share sales in the country have raised $6.5 billion so far this year, more than double the amount from the year-ago period but below levels seen in 2021, according to data compiled by Bloomberg.
At the IPO price, Ola is valued at $4 billion. That’s a sharp discount for the loss-making firm seeking a potential valuation of as much as $7 billion before facing investor pushback, Bloomberg News reported earlier this year.
Axis Capital, BofA Securities, BOB Capital Markets, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, Kotak Mahindra Capital, SBI Capital Markets are bookrunning lead managers for the IPO.
