Ola Electric Mobility’s Shares Soar 20% on Trading Debut, Valuing Company at $4.8 Billion

Ola Electric Mobility, India’s leading electric two-wheeler manufacturer, made a stunning debut on the stock market, with its shares surging 20% on its trading debut in Mumbai on Friday. The company’s initial public offering (IPO) valued it at a staggering $4.8 billion, making it the biggest IPO in India so far this year.

The stock listed flat at its IPO price of 76 rupees, but quickly rose to 91.20 rupees, outperforming the broader market which was up 1%. Despite receiving demand well below street expectations, Ola Electric’s shares listed above expectations, largely due to market sentiment.

As the company’s founder, Bhavish Aggarwal, told CNBC-TV18 on Friday, "Our focus will be to build profitable growth for investors to also feel that there is a long-term profitability journey here also." Ola Electric plans to invest the majority of its IPO proceeds, around $660 million, in research and development and its battery cell manufacturing unit.

The company’s aggressive growth strategy is centered around manufacturing its own battery cells, which will make its electric scooters more affordable. Ola Electric is targeting commercial production of its battery cells by early 2025.

Analysts said investors were optimistic about the company’s foray into motorcycles, which account for two-thirds of India’s two-wheeler market. The company is expected to launch its range of electric motorcycles next week.

While Ola Electric’s revenues have soared, the company is yet to turn a profit. In the year to the end of March, its sales rose 90% year-on-year, but losses widened 8%. Despite this, investors are betting on the company’s long-term growth potential.

"Ola Electric is in a very aggressive growth phase… where we are investing for future growth," Aggarwal said. With its strong market position and innovative strategy, Ola Electric is well-positioned to capitalize on the growing demand for electric vehicles in India.