Shares of Ola Electric Mobility surged 71% from its listing price of Rs 76, with its market capitalization exceeding Rs 51,000 crore in just three days after the stock debuted on the bourses.
Today’s stock made a new high of Rs 130 on the BSE after surging nearly 19% in an early trading session.
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On Friday, the company announced that the board will also be holding its first board meeting after the listing on August 14, announcing the first quarter results for the financial year 2025.
The company’s shares were listed at Rs 76 apiece, in line with the IPO price. The listing was mainly in line with expectations as the GMP was discounted in the unlisted market.
“In the case of Ola Electric, despite receiving a decent response from the market during the subscription period, the GMP turned negative due to a shift in market sentiment. This further supports the fact that while GMP can offer a snapshot of investors’ expectations, it should not be considered as the sole factor while making investment decisions,” said Parth Shah, Research Analyst at StoxBox while commenting on how GMP cannot be the sole indicator of the IPO performance.
“Eventually pricing has to reflect the fair value and there could be periods of distortion along the way investor preference, as in this particular case, is also influenced by businesses that are in the emerging high growth sectors and have propositions which are unique and potentially disruptive,” said Arindam Ghosh, Co-Founder, Alphaniti.
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The surge in the share price of Ola Electric is also attributed to its leadership in the electric two-wheeler market, holding a 35% share.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
