Ola Electric surges in India’s biggest IPO of the year
But the country's largest electric-scooter maker hasn’t turned a profit yet, reporting a net loss of ₹16 billion ($200.5 million) in its last financial year.
The shares of Ola Electric, India’s largest electric-scooter maker, rose by 20% on its public debut on Friday in India’s largest IPO this year.
Shares of the firm hit a peak of ₹91.18 ($1.1) after starting to trade at ₹76, which is the higher end of its IPO price range.
The backers of the Bengaluru-based firm include Japan’s SoftBank and Singapore’s investment fund Temasek.
Ola Electric filed to go public at a valuation 26% lower than the $5.4 billion it got during a funding round last October and noticeably below its initial IPO target of $6.5-$8 billion.
The company, which occupies a 46% share in India’s electric two-wheeler market, launched its first electric scooter in 2021. It has sold over 330,000 units till March 2024. However, it hasn’t turned a profit yet, reporting a net loss of ₹16 billion ($200.5 million) in its last financial year.
Though the Indian government has provided incentives for companies such as Ola Electric to grow, the recent slashing of subsidies may have impacted sales of battery-powered vehicles.
Ola Electric aims to develop its own battery cell technology and manufacturing capabilities.
