It was also interesting to see how Ola Electric performed in the stock market as far as its shares were concerned. It began with the company’s public offering on August 9,2024 at Rs 76 per share of stock and quickly picked up momentum. On the second day itself, the shares rose by 11% and were trading at over Rs 100. This strong performance, which was above analysts’ expectations, attracted the attention of investors and market observers.
Surprisingly, the stock started flat when the market opened, despite the hype about the IPO of Ola Electric. Despite this, there was an improvement as the day went on; this is because the market participants were hopeful about the future of the firm. Towards the close on the second day of trading the shares were to some extent being sold at about Rs 101.29, which of course, is good growth from the starting listing price.
Also Read: Ola Cabs Rebranded To Ola Consumer; Ride-Sharing Service Ola Share Relaunched
There has been a rise of interest in electric vehicles (EVs) in the Indian market and this is supported by Ola Electric IPO which was subscribed 29% and amount to Rs 6,146 crore. The presence of the company in the EV market and specific focus on two-wheeler market has been a major factor that has attracted investors.
However, as some experts suggest, one should know that there is a warning. There is initial enthusiasm that sends the stock increasing but analysts and investors are worried about the company’s financial stability and profitability in the long run. Experts recommend that those high-risk investors should only consider holding the stock for the long term as the EV market remains evolving, and Ola Electric will have to overcome some difficulties to maintain its trajectory.
Also Read: Ola Electric IPO: 2-6 Aug, Rs 72-76 per share, Rs 6,145.56 cr
Ola Electric shares surge 20%, cross Rs 100 mark on day 2
Ola Electric’s shares have been on an upward trend, led by Bhavish Aggarwal, despite the overall negative mood in the market on Monday. The stock surged by nearly 20%, reaching the upper limit of Rs 109.41 on the BSE.
Ola Electric as a firm has been listed on Monday, 9th of August, 2024 and since then the shares of the firm have increased and are currently 43. 97% so far. Even with a start at its start of the first trading day at Rs 76, the shares hit up 20% to Rs 91.18 per share.
But some analysts continue to be careful and some extent uncertain about the future profitability of the company because of the slow start. A senior official of Mehta Equities, Prashanth Tapse said that despite concerns about overlooked listing process coming down, the market is now awaiting the Ola Electric Bike in India which is planned to be released on August 15.
“Considering all the factors, we advise only risk taking investors to continue to hold with a minimum holding period of 2-3 years and recommend to accumulate on every dip to be part of long term journey,” said Tapse.
Ola Electric also stated that they will report their financials for the second quarter 2024, which ends on the 30th June 2024, on the 14th of August 2024. This company has the largest market share in India at around 35% in the electric two-wheeler segment by FY24 and aims at locally manufacturing Advanced EV and components like battery cells. Market capitalization of Ola Electric as on August 12, 2024 is Rs 46,278. Also, the BSE alone accounted for an investment of over 43 crore.
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