Nandini Roy Choudhury, writer
Brief news
- Ola Electric, an Indian electric vehicle company, saw a 20% increase in its stock price, resulting in a valuation of over $4.8 billion.
- The company raised over $730 million through its initial public offering, making it the largest listing in India for the year.
- Ola Electric aims to dominate India’s electric vehicle market and plans to launch its first electric motorbike in 2025.
Detailed news
Following a 20% spike in its stock price on Friday, Ola Electric, an Indian business that specializes on electric vehicles, is now valued at over $4.8 billion.
Ola Electric has successfully priced its shares at 76 rupees (91 cents), generating over $730 million through its initial public offering in Mumbai. According to Reuters, this is the largest listing in India for the year.
At 3:52 p.m. local time, the shares were being traded at approximately 91.20 rupees.
Investors are optimistic about the company’s potential to dominate India’s electric vehicle market, especially with the government’s efforts to support the industry.
Ola Electric manufactures electric scooters and began shipping its first product just 2½ years ago.
Two-wheelers are incredibly popular for transportation in India. According to data from McKinsey & Co., it is projected that by 2030, a significant majority of new scooter sales in India will be electric two-wheelers, accounting for 60% to 70% of the market.
Ola Electric is strategically positioning itself to capitalize on this trend by gearing up to launch its inaugural electric motorbike in the latter part of 2025.
The startup, led by renowned entrepreneur Bhavish Aggarwal, aims to offer a comprehensive range of services, including design, manufacturing, and battery technology, similar to Tesla’s approach.
At the moment, it seems that the company has no intentions of venturing into the automobile industry.
Ola Electric boasts a roster of esteemed investors, including SoftBank and Singapore’s investment fund Temasek.
The company has announced its intention to utilize the funds raised from the IPO to reduce its debts, invest in further research and development, and facilitate the growth of its gigafactory battery plant.
Despite a significant increase in the company’s revenue, its losses also expanded during the year ended March 31. The company has not yet generated any profits.
Aggarwal is also one of the co-founders of Ola Cabs, a prominent ride-hailing company based in India.
Source : CNBC News
