Ola Electric shares surged 20% to the upper circuit high of ₹91.20 on the NSE. This steep rise came after a lackluster initial listing; shares of the company debuted at ₹76, par below the IPO issue price, testing the patience of some investors.
The long-anticipated ₹6,146-crore IPO of Ola Electric closed on 6 August and was subscribed 4.26 times, below market expectations. Anchor investors who have invested in this IPO include Nomura, HDFC Mutual Fund, among others and SBI Mutual Fund.
Market experts sounded a note of caution on the stock. Prashanth Tapse of Mehta Equities has asked investors to take a cautious call, citing Ola Electric’s record of negative net cash flows in the past and the possibility of continuing the same in the coming future. He said investors who can take risk must hold on to it for a period of 2-3 years.
Shivani Nyati of Swastika Investmart, Head of Wealth, said that the company has good ambitions in the EV market, but the current losses scare with the competitive industry layout. She suggested booking profit at the current surge for investors, adding risk-takers could hold their position with a stop loss below ₹ 70 levels.
Ola Electric saw unprecedented growth in its revenue from operations, which zoomed to ₹5,009.8 crore in fiscal 2024 from ₹2,630.9 crore in fiscal 2023, on the back of brisk sales of its two-wheeler models, the Ola S1 and Ola S1 Pro, until the company pushed up further by introducing Ola S1 Air and Ola S1 X+ models. However, the losses also widened, accompanying a net loss of ₹1,584.4 crore in fiscal 2024 from ₹1,472 crore in fiscal 2023.
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Source: ET
News Desk
