Shares of Bhavish Aggarwal-led Ola Electric Mobility made a disappointing debut, listing at the issue price of Rs 76. However, within minutes of trading opening at 10 am, the stock surged by 15%, reaching a high of Rs 87.43 on the NSE. It is currently trading up by 19.07% at Rs 90.49.
The IPO, which garnered significant attention and was valued at Rs 6,146 crore, closed on August 6 with a subscription of only 4.26 times, falling short of market expectations. Anchor investors in the IPO included Nomura, HDFC Mutual Fund, and SBI Mutual Fund.
Experts Outlook on Ola Electric Mobility IPO
Prashanth Tapse of Mehta Equities cautioned investors about the risks, noting, “Allotted investors should understand the risk of negative net cash flows in the past, and future negative cash flows which could adversely impact its consolidated financial condition post-listing.”
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Despite the shares being offered at a discount compared to the last private placement valuation, investor enthusiasm remained muted. Tapse advised that only risk-tolerant investors should hold the shares with a minimum holding period of 2-3 years, as the company faces challenges due to its ongoing losses and a competitive market environment.
While commenting on the same Shivani Nyati, Head of Wealth, Swastika Investmart said that Ola Electric Mobility, the electric vehicle pioneer, made a its debut on the stock market, listing at its issue price of Rs. 76 per share. This flat performance, coupled with a mere 4.45 times subscription, underscores the challenges the company faces in gaining investor confidence.
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“The flat listing highlights the need for Ola Electric to demonstrate a clear path to profitability and navigate the complexities of the EV market effectively. Investors are suggested to exit and book a minor profit, but those who want to take risks may hold their position by keeping a stop loss below 70,” Nyati adds.
What do Ola Electric Mobility’s Financial Suggest ?
Ola Electric reported a significant increase in revenue from operations, which rose to Rs 5,009.8 crore in fiscal 2024 from Rs 2,630.9 crore in fiscal 2023. This growth was driven by higher sales of the Ola S1 and Ola S1 Pro scooters, and the launch of the Ola S1 Air and Ola S1 X+.
However, the company’s losses also widened, with a loss of Rs 1,584.4 crore in fiscal 2024 compared to Rs 1,472 crore in fiscal 2023, raising concerns about its financial stability amidst an ambitious vision for the EV market.
(Disclaimer: Views, recommendations, and opinions expressed are personal and do not reflect the official position or policy of Financial Express.com. Readers are advised to consult qualified financial advisors before making any investment decisions. Reproducing this content without permission is prohibited.) Come from Sports betting site VPbet
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