Ola Electric Mobility made a triumphant entry into the stock market on Friday, with its shares surging by 20% shortly after listing. Shares of the Indian electric scooter company, which were initially priced at ₹76, soared to ₹91.20, buoyed by strong investor enthusiasm and optimism surrounding the EV market.
According to a Reuters report, Ola Electric, which raised $734 million through its initial public offering (IPO), is now valued at approximately $4.8 billion. The company’s founder, Bhavish Aggarwal, expressed his excitement about the company’s journey and the overwhelming response from investors.
“Our hard work has paid off and the world recognises that,” Aggarwal wrote in a post on social media platform X. “Our destination is still far ahead and we didn’t come this far, to just come this far,” he added.
This IPO reportedly stands as the largest in India for 2024 and highlights the growing investor confidence in the electric mobility sector. The company’s significant market share in the Indian electric scooter market, coupled with a burgeoning interest in EVs, has been pivotal in driving this positive reception. Market analysts attributed the strong opening to an improved market sentiment and increased optimism regarding the company’s future prospects.
Ola Electric, which began its journey in 2017 and launched its first scooter in 2021, has encountered a mix of successes and challenges. Despite the enthusiasm, the company has yet to achieve profitability. According to the report, for the fiscal year ending in March 2024, Ola Electric reported a 90% increase in sales, yet its losses also widened by 8%. The firm is focusing on investing the $660 million from the IPO into research and development and expanding its battery cell manufacturing capabilities, which is expected to commence commercial production by early 2025.
