Shares of the recently listed Ola Electric today surged 11% to its fresh high of Rs 101.29 on BSE on the second day after its listing on the stock exchanges.
Ola Electric was listed on Friday, August 9 disappointing investors as it got listed at par with the issue price of Rs 76. However, later during the day, the stock surged 20% to hit an upper circuit high of Rs 91.20 on NSE.
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The company on Friday also announced that the board will also be holding its first board meeting after the listing on August 14 wherein they will be announcing the first quarter results for the financial year 2025.
The Rs 6,146 crore much-hyped IPO, which closed on August 6, was booked only 4.26 times – well below the Street expectations. Anchor investors in the IPO included Nomura, HDFC Mutual Fund and SBI Mutual Fund.
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“Allotted investors should understand the risk of negative net cash flows in the past, and future negative cash flows which could adversely impact its consolidated financial condition post listing,” said Prashanth Tapse of Mehta Equities while commenting on the fresh investment in the stock post listing.
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“Despite the company offering its shares at a well discounted price lower than last private placement valuation, IPO investors were not so bullish on the loss making company and may wait for better lower pricing post listing. Considering all the factors, we advise only risk taking investors to continue to hold with a minimum holding period of 2-3 years,” he said.
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