After a subdued debut, the stock price of the electric vehicle company has been consistently increasing.
The share price of Ola Electric surged 58 per cent over a three-day period, reaching a market capitalisation of Rs 51,000 crore. The shares of the electric vehicle company was trading at Rs 112.40 at 12:33 pm, up from the previous close of Rs 109.44.
After a subdued debut, the stock price of the electric vehicle company has been consistently increasing. The stock that was listed on August 9 at Rs 76 has surged over 18 per cent at Rs 129.40. This is after the company hit a 20 per cent upper circuit for the two consecutive days.
Highlighting the reason behind keeping its share price low, Ola CEO Bhavish Aggarwal reportedly said that the company, being four to five years old, has grown substantially, and it was important to price the offering attractively for the entire investor community in India. He told the Economic Times, “I wanted to make sure we priced it attractively for the entire investor community in India.”
This comes at a time when the company mentioned that it is releasing its Q1 results on August 14. As per a regulatory filing, the company highlighted, “Pursuant to Regulation 29 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), we wish to inform you that a meeting of the Board of Directors of Ola Electric Mobility Limited (“the Company”) is scheduled to be held on Wednesday, August 14, 2024, inter alia, to consider and approve the unaudited standalone and consolidated financial results of the Company for the quarter ended June 30, 2024.”
The company has also mentioned that a post-earnings call with analysts and institutional investors to discuss the financial results for the quarter ending June 30, 2024, will be held on the same day following the board meeting.
One of the first electric vehicle IPOs of the country, Ola Electric, dominates the electric vehicle segment with a market share of 39 per cent, as per Reuters. The company is also expected to launch its new electric motorcycles on Independence Day.
While Ola Electric's FY24 revenue surged 90 per cent to Rs 5,009 crore, losses widened by 8 per cent to Rs 1,584 crore, despite strong e-scooter sales. Meanwhile, investors have expressed caution about the IPO. Prashanth Tapse, Senior VP of Research at Mehta Equities, suggests that only risk-tolerant investors should maintain their holdings for at least 2-3 years, as the long-term prospects remain solid despite potential short-term fluctuations.