Ola Electric’s shares surge 10% in debut trade, valuing company at $4.4 bn
With a 39 per cent market share, Ola Electric dominates sales of electric scooters in India. Image: X@OlaElectric
SoftBank-backed Ola Electric Mobility’s shares rose 10 per cent in their trading debut on Friday, valuing the company at Rs 36,945 crores ($4.40 billion) after the first stock offering by a pure-play electric vehicle maker in India.
The stock had listed flat to its initial offer price at Rs 76 on the National Stock Exchange in a broader market that was up 1 per cent. Ola Electric’s $734 million initial public offering, India’s biggest so far in 2024, drew about $1.8 billion in bids this week.
With a 39 per cent market share, Ola Electric dominates sales of electric scooters in India, after launching its first model just three years ago. However, while Ola’s revenues have soared, it is yet to report a profit.
In the year to the end of March 2024, the company’s sales grew 90 per cent from the previous year, but its losses widened by 8 per cent.
The company, whose share from the IPO was about $660 million, is planning to invest most of the proceeds for research and development and its battery cell manufacturing unit.
Ola Electric has pinned its profitability on manufacturing its own battery cells for its scooters, which should make them more affordable. It is targeting commercial production of the battery cells by early 2025.
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First Published: Aug 09 2024 | 11:25 AM IST