Ola IPO Listing: Ola Electric Mobility Ltd on Friday made a stock market debut with a flat listing. The company’s shares listed on the BSE at Rs 75.99 apiece on the BSE as against its IPO issue price of Rs 76. However, later, the company’s shares surged and finally ended the day with a 20 per cent gain at Rs 91.18 apiece on the BSE.
On the NSE, Ola Electric opened a flat at Rs 76 apiece. However, later, it gained sharply and closed higher by 20 per cent at Rs 91.20 apiece.
Prashanth Tapse, senior vice-president (research) of Mehta Equities, said, “Despite receiving demand well below street expectation, OLA listed well above street expectations can be attributed to market mood. Post listing the short term view remain same due to weak financials and risk of negative cash flows in future and allotted investors should understand the risk before holding which could adversely impact its consolidated financial condition post listing. Considering all the factors, we advise only risk taking investors to continue to hold with a minimum holding period of 2-3 years.”
Despite the company offering its shares at a well discounted price lower than last private placement valuation, IPO investors were not so bullish on the loss-making company, he said.
“What if the stock is available well below its issue price, we recommend risk taking investors to accumulate on every dip to be part of 2-3 years of journey. The long term story is intact but we may see a lot of ups and downs in the short term,” Tapse added.
Shivani Nyati, head of wealth, Swastika Investmart Ltd, said, “Ola Electric Mobility Ltd., the electric vehicle pioneer, made a its debut on the stock market, listing at its issue price of Rs. 76 per share. This flat performance, coupled with a mere 4.45 times subscription, underscores the challenges the company faces in gaining investor confidence.”
While Ola Electric’s vision for the EV market is ambitious, the company’s current financial performance, marked by consistent losses, and the highly competitive landscape have tempered investor enthusiasm. The negative grey market sentiment prior to listing further reflected these concerns, she said.
“The flat listing highlights the need for Ola Electric to demonstrate a clear path to profitability and navigate the complexities of the EV market effectively. Investors are suggested to exit and book a minor profit, but those who want to take risks may hold their position by keeping a stop loss below 70,” Nyati added.
The Rs 6,145-crore IPO of electric two-wheeler company Ola Electric Mobility received 4.27 times subscription on the final day of bidding. It was open for subscription between August 2 and August 6.
Its price band was fixed at Rs 72-76 apiece.
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