Business
Ola Electric Shares Soar After Flat Market Debut
Ola Electric Mobility made a splash in the stock market today, August 9, 2024, with its shares starting off at ₹76 each. Initially, the stock had a flat listing, matching its issue price. On the BSE, however, shares opened slightly lower at ₹75.99.
The excitement around the stock picked up speed quickly! Within the first hour of trading, the share volume surged from 6 crores to over 34 crores as investors jumped on board. By mid-afternoon, Ola Electric’s share price had soared by nearly 20%.
On the BSE, shares closed at ₹91.18, marking an impressive 19.99% increase. The shares touched an intraday high of ₹90.88 on the NSE, a significant gain from the IPO price.
Analysts pointed out that despite the company’s increasing revenue—growing from ₹456.2 crore to ₹5,243.2 crore between FY22 and FY24—the net losses also expanded significantly, from ₹784.14 crore to ₹1,584.4 crore. This raises questions about Ola Electric’s long-term financial sustainability.
Strong demand for the newly listed shares led to the stock hitting its upper circuit limit, indicating a strong preference from buyers. With no sellers in sight right after the listing, the market responded positively, despite a more subdued outlook prior to the IPO.
Arun Kejriwal, a well-known financial expert, advised current shareholders to hold their stocks, suggesting they maintain a stop loss at ₹75. He noted the unusual trading volume suggests aggressive institutional buying.
For new investors interested in the electric vehicle manufacturer, analysts recommend starting to accumulate shares at current prices and to continue adding on dips. This advice reflects the belief in a potential long-term growth narrative despite current volatility.
Though shares started with a flat performance at the IPO price, the robust demand showcased the underlying interest in Ola Electric’s ambitious plans in the EV sector. Investors will be keen to watch how the company manages its growth amid fierce competition and ongoing financial challenges.
