Ola Electric jumps 11% after muted debut: Should you buy?

Ola, backed by strong investor demand amid growing adoption for electric vehicles in the country, raised about $733 million via its offering.

Updated on: Aug 9, 2024, 11:31:01 IST

By HT News Desk

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Ola Electric Mobility Ltd.’s shares surged after debut as the shares of India’s biggest e-scooter maker rose as much as 11% over the initial public offer price of 76 rupees apiece. The company, backed by strong investor demand amid growing adoption for electric vehicles in the country, raised about $733 million via its offering. Ola Electric IPO is country’s largest issue since state-run Life Insurance Corp of India’s $2.7 billion share sale in 2022.

Ola Electric IPO: Ola Electric CMD Bhavish Aggarwal addresses the media during the announcement of the company's forthcoming initial public offering (IPO), in Mumbai. (PTI)

Read more: Ola Electric IPO makes tepid debut: Lists at par with issue price of ₹76

At the IPO price, Ola is valued at $4 billion- a sharp discount for the loss-making company that sought a potential valuation of as much as $7 billion before facing investor pushback, it was reported.

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Axis Capital, BofA Securities, BOB Capital Markets, Citigroup Global Markets India, Goldman Sachs (India) Securities, ICICI Securities, Kotak Mahindra Capital, SBI Capital Markets are bookrunning lead managers for the IPO.

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HT News Desk
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