According to foreign media reports, as investors bet on the increasing popularity of electric vehicles in the Indian two-wheeler market, Ola Electric Mobility’s share price rose 20% on its first day of listing in Mumbai on August 9, with the company’s market value reaching 4.
8 billion US dollars.
Ola Electric traded at the same price as at its initial public offering (IPO, Rs 76), but later rose to Rs 91.
20 after the market rose 1%.
Ola Electric raised US$734 million at its IPO, making it India’s largest IPO so far in 2024.
In India, the penetration rate of electric vehicles is still low, but it is increasing as the government under Prime Minister Narendra Modi strives to promote clean energy.
, Photo source: Ola Electric, as of July this year, Ola Electric has a 39% share of India’s electric scooter market, and the company only launched its first model three years ago.
, Analysts said investors are also optimistic about Ola Electric’s move into the motorcycle market, which accounts for two-thirds of India’s two-wheeler market.
The company is expected to launch a range of electric motorcycles this week.
, However, although Ola Electric’s revenue has been soaring, the company has yet to turn a profit.
In the fiscal year ending March this year, its sales surged 90% year-on-year, but its losses widened by 8%.
On the evening of August 9, Bavish Aggarwal, founder of Ola Electric, told the media after ringing the bell on the National Stock Exchange of India (NSE):”Our focus will be to achieve earnings growth and let investors realize that this is a long-term profitable journey.
“, Ola Electric will receive approximately $660 million in IPO proceeds, with the company planning to invest most of it in R & D and battery production divisions.
, Ola Electric hopes to make a profit by producing its own batteries for its electric scooters, a move that will reduce product prices.
The company’s goal is to achieve commercial production of batteries by early 2025.
, Aggarwal said: “Ola Electric is in a very positive growth phase.
We are investing in future growth.
“, Return to the first electric network home page>,.
