Ola Electric Mobility
, backed by
SoftBank
, witnessed a 10% increase in its shares during its trading debut on Friday.
The company’s valuation reached 369.45 billion rupees ($4.40 billion), marking the first stock offering by a pure-play electric vehicle maker in India.
The stock opened at 76 rupees on the National Stock Exchange, remaining flat compared to its initial offer price, while the broader market experienced a 1% gain.
Ola Electric’s initial public offering, which raised $734 million, attracted bids worth approximately $1.8 billion throughout the week, making it the largest IPO in the country so far in 2024.
With a market share of 39%, Ola Electric has established itself as the leader in electric scooter sales in India, just three years after introducing its first model.
Despite the company’s impressive revenue growth, it has yet to achieve profitability. In the fiscal year ending March 2024, Ola Electric’s sales increased by 90% compared to the previous year, but its losses also widened by 8%.
The company plans to allocate a significant portion of the IPO proceeds, which amounted to around $660 million, towards research and development initiatives and its battery cell manufacturing unit.
Ola Electric’s strategy for profitability hinges on producing its own battery cells for its scooters, which is expected to make them more affordable. The company aims to commence commercial production of the battery cells by early 2025.
