Ola Electric shares surge 20% for second consecutive session after market debut

Shares of Ola Electric Mobility surged by their daily maximum limit of 20 per cent on Monday hitting an intraday high of Rs 109.41. This follows a similar 20 per cent rally during its market debut on August 9, 2024, which triggered the upper circuit breaker, indicating strong investor confidence in the company.

In the morning session of its second day of trading, over 15 crore shares of the Bhavish Aggarwal-led company were exchanged. This trading volume was lower compared to the 57 crore shares traded on its debut day. On August 1, the company had raised Rs 2,763 crore from anchor investors, which included domestic mutual funds, domestic life insurance companies, and foreign investment funds.

According to company filings, Ola Electric is scheduled to announce its first-quarter (Q1) results on August 14, 2024, and will also conduct its first board meeting since its listing on the same day. This meeting will consider and approve the unaudited standalone and consolidated financial results for the quarter ending June 30, 2024.

In addition to the financial announcements, Ola Electric is set to unveil its first electric motorcycle on August 15, 2024, coinciding with India’s Independence Day. The electric two-wheeler maker has been developing this motorcycle for some time, following the unveiling of concept models last August, which included the Diamondhead, Adventure, Roadster, and Cruiser models.

The initial public offering (IPO) of Ola Electric consisted of a fresh issue of Rs 5,500 crore by the company and an offer-for-sale of 8.49 crore shares valued at Rs 645.6 crore by existing shareholders, including founder Bhavish Aggarwal.

Regarding the anchor investor allotment, 40 per cent was allocated to domestic mutual funds, while the majority share of 54 per cent was allotted to global investment firms. Among domestic mutual funds, SBI MF, HDFC MF, and Nippon India MF were the major recipients of the anchor portion.

As of 10:31 AM, the shares of Ola Electric remained locked at the 20 per cent upper circuit limit, trading at Rs 109.41, reflecting a continuation of the strong positive momentum following the company’s market debut.