Ola Electric shares hit 20% upper circuit on second day; stock trades 44% above IPO price
Ola Electric Mobility shares rallied another 20 per cent on Monday, hitting its daily circuit limit at Rs 109.44. The company’s total market capitalisation stood at over Rs 48,250 crore for the day. On Friday, the stock had closed at Rs 91.20, up 20 per cent on the first day.
Ola Electric Mobility had a quiet debut on Dalal Street on Friday when the stock listed flat at an issue price of Rs 76.Following listing, there was a lot of interest in purchasing the stock. In the span of two trading sessions, the stock has increased by 44% from its initial price.
Ola Electric Mobility stock saw a muted opening on Dalal Street on Friday, but after going public during its first trading session amidst a spike in more general markets, there was significant buying interest in the company. Investors were handsomely rewarded when the stock exceeded expectations of a muted listing.
The pure-play EV player Ola Electric Mobility offered its shares in an initial public offering (IPO) between August 2 and August 6, with a lot size of 195 shares. The shares were priced in a fixed range of Rs 72–76 per share. The company raised a total of Rs 6,145.56 crore through its IPO. The total number of subscriptions to the issue was just 4.27.
Ola Electric is the largest e2W seller in India by number of units registered in FY24 and the company is still in the investment phase, indicating great potential ahead, said Mahesh M Ojha, AVP – Research & Business Development at Hansex Securities. “We believe Ola Electric is a good portfolio pick for investors looking to invest in the EV sector. Investors can hold it for 2-3 years,” he said.
