Shares of the recently listed Ola Electric today surged 20% to hit an upper circuit of Rs 109.41 on BSE on the second day after its listing on the stock exchanges.
The company’s shares climbed 17.56 per cent to Rs 107.20 during early trade on Monday. Ola Electric Mobility shares have been trading higher since their listing on Friday, August 9, 2024, and have climbed 41.07 per cent so far.
At around 09:56 AM, Ola Electric shares were quoted at Rs 105.35, up 15.54 per cent from their previous close of Rs 91.18 on the BSE. The stock is currently trading merely Rs 4.06 or 3.71 per cent shy of its upper circuit of Rs 109.41 on the BSE. While writing this news, 108.08 lakh equity shares of Ola Electric worth nearly Rs 110.08 crore exchanged hands on the BSE.
The company on Friday also announced that the board will also be holding its first board meeting after the listing on August 14 wherein they will be announcing the first quarter results for the financial year 2025.
The Rs 6,146 crore much-hyped IPO, which closed on August 6, was booked only 4.26 times – well below the Street expectations. Anchor investors in the IPO included Nomura, HDFC Mutual Fund and SBI Mutual Fund.
“Allotted investors should understand the risk of negative net cash flows in the past, and future negative cash flows which could adversely impact its consolidated financial condition post listing,” said Prashanth Tapse of Mehta Equities while commenting on the fresh investment in the stock post listing.
“Despite the company offering its shares at a well discounted price lower than last private placement valuation, IPO investors were not so bullish on the loss making company and may wait for better lower pricing post listing. 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.
Ola Electric, a pure EV player in India, commands nearly a 35 per cent market share in India’s electric two-wheeler market in FY24. The company is engaged in building vertically integrated technology and manufacturing capabilities for EVs and EV components, including cells.
Ola Electric commands a market capitalisation of Rs 46,278.43 crore on the BSE, as of August 12, 2024.
