NEW DELHI: Ola Electric made a silent debut on the exchanges with its shares getting listed at par against its issue price of R76 on the BSE. However, post-listing, it witnessed strong buying and hit a 20% upper circuit limit on Friday.
The stock ended the session at R91.19 apiece and its market capitalisation surpassed the R 40,000 crore mark. The listing and surge in share prices doubled founder Bhavish Aggarwal’s fortune. According to the Bloomberg Billionaires Index, the 38-year-old entrepreneur added $1.5 billion to his wealth on Friday, taking his net worth to $2.7 billion. The shares defied the negative premium it was commanding in the unofficial premium market. Ahead of the listing, Ola Electric shares on Thursday were trading at a discount of ₹3 in the unlisted market.
“Ola Electric had a strong market debut, defying grey market expectations of a 4-5% discount. The positive performance is attributed to its healthy long-term outlook, 38% market share, benefits from the PLI scheme, and advantages of vertical integration,” said Vinod Nair, Head of Research, Geojit Financial Services. Commenting on the listing, Shivani Nyati, Head of Wealth, Swastika Investmart, said the flat listing performance, coupled with a mere 4.45 times subscription, underscores the challenges the company faces in gaining investor confidence.
“While Ola Electric’s vision for the EV market is ambitious, the company’s current financial performance, marked by consistent losses, and the highly competitive landscape have tempered investor enthusiasm.” “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,” added Nyati. The much anticipated IPO of Ola Electric was subscribed about 4.5 times, receiving bids for 198.16 crore equity shares against 46.52 crore shares on offer.
Sensex, Nifty surge 1% on positive global cues
India’s equity market ended higher on Friday with the benchmarks- BSE Sensex and NSE Nifty50 - gaining over 1% each. The Sensex closed the session 819 points higher at 79,705 and Nifty gained 250 points to settle 24,367. The surge is attributed to positive US jobless claims data as it eases the fears of a recession in the biggest economy. The market capitalisation of BSE-listed firms rose R4.46 lakh crore to R450.21 lakh crore on Friday against R445.75 lakh crore on Thursday.