Ola Electric Mobility Ltd shares continued to fall in Wednesday's trade after hitting their record high during the previous session. The stock tanked 7.20 per cent to hit a day low of Rs 100.29. Last checked, it was trading 3.26 per cent lower at Rs 104.55. At this price, the recently listed scrip has declined 19.58 per cent from its lifetime high of Rs 130, a level seen yesterday (August 13).
Despite the mentioned drop, the counter has gained 37.56 per cent from its initial public offering (IPO) price of Rs 76. The counter made a muted market debut on Friday last week (August 9) but witnessed a strong buying interest during the post-listing trade. The company raised around Rs 6,145.56 crore from its initial share sale.
A few analysts largely advised investors to consider booking profit at current levels. Although those with a long-term view can hold on to the stock, they added.
"The stock has been flyer over the last 2-3 days. So, let it settle down after the recent runup. As a disclosure, we've given a 'Subscribe' rating to the IPO of Ola Electric. We will see a curtain raiser for a new electric motorcycle from the company tomorrow. I think one should look forward to it. That said, the management needs to do something serious, given the loss on its balance sheet and the timeframe to turn it around," Gaurang Shah, Senior VP at Geojit Financial told Business Today TV.
"Investors who applied for listing gains can book profit at current levels. Those who invested for the longer term can hold on to the stock," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
"On technical setup, resistance will be at Rs 130. Immediate support will now be at Rs 100 and a slip below the said level can trigger further drop," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking. Singh suggested that traders can consider profit booking at present.
Bengaluru-based Ola Electric was founded in 2017. It is a pure-play electric vehicle player that primarily manufactures electric vehicles and certain core components for electric vehicles such as battery packs, motors, and vehicle frames at the Ola Futurefactory.
As of August 8, 2024, promoters held a 36.78 per cent stake in the E2W player.