Shares of Ola Electric Mobility Ltd extended their gains in Monday's trade to rise another 20 per cent for the session. The stock, which was listed at the bourses on a muted note on Friday, saw a strong buying interest in its maiden trading session and hit an upper circuit of 20 per cent.
Ola Electric soared another 20 per cent, hitting its daily circuit limit to Rs 109.44 on Monday. The total market capitalization of the company stood more than Rs 48,250 crore for the day. The scrip had settled at Rs 91.20 on Friday, rising 20 per cent on day one.
Ola Electric Mobility had made a muted Dalal Street debut on Friday, when stock was listed flat, or at the issue price of Rs 76 on Friday. The stock saw a strong buying interest after listing. The stock has gained 44 per cent from its issue price in just two trading sessions.
Shares of Ola Electric Mobility made a muted debut at Dalal Street on Friday but the stock had a strong buying interest post listing during its maiden trading session, amid the rebound in the broader markets. Bucking the expectations of muted listing, the stock handsomely rewarded the investors.
The IPO of Ola Electric Mobility was open for bidding between August 2 and August 6, where the pure-play EV player had offered its shares in the fixed price band of Rs 72-76 per share with a lot size of 195 shares. The company raised a total of Rs 6,145.56 crore from its IPO. The issue was overall subscribed a total of 4.27 times.
Ola Electric is the largest E2W seller in India by number of units registered in fiscal 2024 and the company is still in investment phase, it portrays great potential ahead, said Mahesh M Ojha, AVP – Research & Business Development at Hensex Securities. "We believe Ola Electric is a good portfolio pick for investors willing to invest in EV Sector. Investors can hold for 2-3 years," he said.
On Friday, Prashanth Tapse, Sr VP Research at Mehta Equities expresses his concerns over weak financials and negative cash flows of the company. "We recommend risk taking investors to accumulate on every dip to be part of 2-3 years of journey, The long-term story is intact but we may see a lot of ups and downs in the short term," he said.
Bengaluru-based Ola Electric Mobility 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.
"On account of positive EV market outlook, favourable regulatory environment, large quantum of fresh issue in the IPO, announcement of new models along with the upcoming cell manufacturing unit (Gigafactory), we have a positive view for the company," Parth Shah, Research Analyst, StoxBox, suggesting investors to hold it from a medium to long term perspective.
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