Ola Electric's shares had a 20 percent spike before hitting the upper circuit on the BSE after making a flat start on the stock exchanges.

Despite strong investor demand, the Bhavish Aggarwal-led company had a lackluster launch on Friday, matching the issue price and listed at Rs 76 on the NSE.

The stock opened at Rs 75.99 on the BSE, a 0.01 percent discount.

The first entirely electric vehicle to enter the stock market, Ola Electric Mobility, saw a moderate response to its public offering 4.27 times.

Qualified institutional and retail investors showed greater interest, with their respective shares being subscribed 5.31 and 3.92 times, respectively.

HNIs (non-institution investors) were not as vocal, though, since bids on their reserved fraction exceeded 2.40 times.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said Ola listed well above Street expectations due to overall positive market mood. “Post listing, the short-term view remain same due to weak financials and risk of negative cash flows in future. Considering all the factors, we advise only risk taking investors to continue to hold with a minimum holding period of 2-3 years,” he said.

"The importance of today, this moment is finally sinking in. It felt like a process till yesterday - where we did our work and put in our time and made India one of the largest EV 2W markets. Our hard work has paid off and the world recognises that, " Aggarwal said in a post on X.

The Ola Giga factory's installed capacity will be increased from 5GWh to 6.4GWh with the help of the funds raised.

Additionally, working capital borrowings from Ola Electric Technologies, its material subsidiary, will be repaid in full or in part, and investments in property, plant, and equipment as well as intangible assets, as well as organic growth initiatives and general corporate purposes, will be made.

As a leading player in the EV market in India, Ola Electric Mobility is developing vertically integrated production and technological capabilities for EVs and its component parts, such as cells.

At the Ola Future plant, it produces EVs and several essential EV parts like motors, battery packs, and vehicle chassis.