Ola Electric shares double since market debut: Should you hold?
Ola Electric's shares have experienced a significant surge since their introduction on the stock exchange. Today morning, the company's share price reached the upper price band, marking an almost 100% increase from its initial public offering (IPO) price. The stock rose by 10% to hit ₹146.03 per share on the Bombay Stock Exchange (BSE), and similarly advanced nearly 10% to reach ₹146.38 per share on the National Stock Exchange (NSE).
Ola Electric's market valuation and IPO details
A total of 77.90 lakh shares of Ola Electric Mobility were traded today, generating a turnover of ₹111.21 crore on the BSE. The company's market valuation has now reached ₹64,411.35 crore as per BSE data. The firm's shares debuted at par with the issue price of ₹76 on the NSE but quickly rose by 20% to hit the upper circuit limit post listing.
Ola Electric's financial performance and HSBC's outlook
Despite a consolidated net loss of ₹347 crore for the quarter ending June 30, 2024, Ola Electric saw its revenue from operations rise by 32.3% year-on-year to ₹1,644 crore. The company's EBITDA loss for the quarter was ₹205 crore. Following these results, global brokerage firm HSBC initiated coverage on Ola Electric and issued a 'buy' recommendation due to a positive outlook on the company's future. The company has also ventured into the electric motorcycle segment, attracting interest from investors.
