Ola Electric makes NSE debut, stock up 20%
Ola Electric's landmark IPO sets the stage for India's EV revolution, offering investors a chance to ride the wave of sustainable mobility in the world's largest two-wheeler market. Stock jumped 20% on day one.
Ola stock made a solid debut in Mumbai on Friday, with shares surging 20%, valuing the company at $4.8 billion. This strong start reflects investor confidence in the company and the broader EV sector in India.
Why it matters: As the world's largest market for two-wheelers transitions towards electric mobility, Ola Electric's public listing offers evidence for domestic innovation and could set the tone for future EV investments.
Moreover, it aligns with India's broader push for clean energy, potentially accelerating India's shift towards sustainable transportation.
In The Numbers:
Ola's financial performance reveals a company on a strong growth trajectory, despite widening losses:
- Revenue surged 90.4% to ₹5,009.8 crore in FY24
- Unit sales more than doubled to 3.29 lakh in FY24
- Market share in the electric two-wheeler segment grew to 35% in FY24
These figures highlight the rapid adoption of electric two-wheelers in India, with projections suggesting they could account for about 50% of domestic two-wheeler sales by FY28.
Where Money Goes:
Ola plans to utilize the IPO proceeds strategically:
- ₹1,227.64 crore for expanding its Ola Gigafactory cell manufacturing capacity
- ₹800 crore to repay debt
- ₹1,600 crore for research and product development
- ₹350 crore for organic business expansion
These investments underscore Ola's commitment to scaling its operations and driving innovation in the EV space.
Bottomline: As one of India's biggest IPOs in a year of record-breaking market highs, its performance could influence other EV makers' decisions to go public and impact overall investor sentiment towards the Indian EV industry.
