Ola Electric, India’s largest electric two-wheeler manufacturer, saw its stock price rise by up to 20% during its market debut on Friday, making it the most significant Indian IPO in two years.
The Bengaluru-based company, supported by SoftBank and Temasek, had its shares climb to ₹91.18 (around $1.1) after opening at ₹76, the top end of its IPO range. The IPO valued the company 26% lower than its $5.4 billion valuation from October 2023, and below its earlier target of $6.5 billion to $8 billion.
The shares are currently at ₹90, valuing Ola Electric at $4.75 billion.
As a dominant force in India’s electric two-wheeler market, Ola Electric holds a 46% market share. Since launching its first electric scooter in December 2021, it has sold over 330,000 units as of March 2024.
Despite this growth, the company remains unprofitable, reporting a net loss of ₹16 billion ($200.5 million) and an EBITDA loss of ₹13 billion ($162.8 million) on revenue of ₹50 billion ($626.3 million) in the last financial year.
Ola Electric is investing in vertical integration, developing its own battery cells, and expanding its manufacturing. It plans to increase production capacity to 20GWh by mid-2026.
India’s electric vehicle sector is expected to grow rapidly, with Macquarie projecting electric two-wheelers to gradually capture more of the market, reaching penetration rates of 7%, 10%, 13%, and 16% in the fiscal years 2025 to 2028.
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