Ola Electric Mobility shares climb 4% as two scooters get PLI certification

Shares of Ola Electric Mobility Ltd climbed 4 per cent in Wednesday's trade as the Bhavish Aggarwal-led company said its material subsidiary Ola Electric Technologies received certification for compliance for two of its scooters, as per the Production Linked Incentive (PLI) scheme for the automobile and auto components.

The two scooter models namely S1 X 3 kWh and S1 X 4 kWh models together contribute to half of the Ola Electric's revenues. With the PLI now in place, Ola Electric Technologies would be able to further improve its bottom line, Ola Electric said.

Ola Electric shares climbed 4.41 per cent to Rs 143.80 level on BSE. The stock is up 89.21 per cent over its IPO issue price of Rs 76. It hit a high of Rs 157.53 in the previous session.

Ola Electric Technologies had earlier received the certificate for S1 Air at the Auto PLI Conclave organised in January 2024. "Receiving the PLI certification for the premium and mass-market products affirms our vertically integrated manufacturing strength marking a significant achievement in advancing India's EV vision. The government's ambitious Auto PLI Scheme is poised to enhance local supply chains, foster domestic manufacturing, and assist companies in achieving economies of scale," Ola Electric said.

The certification has been granted by The Automotive Research Association of India (ARAI) after testing of the product and checks on the localisation of the components. Under the scheme, Ola Electric Technologies is eligible for incentives for up to five consecutive financial years, commencing from Fiscal 2024.

HSBC recently initiated coverage on Ola Electric with a 'Buy' rating. But within few days since the report was released on August 15, Ola Electric Mobility shares breached the HSBC's Rs 140 target with ease. On Tuesday, the stock climbed 7.87 per cent to hit a high of Rs 157.53 on BSE. This was 107 per cent higher than the IPO issue price.