Ola Electric Mobility Ltd. has seen its shares jump nearly 90% in less than two weeks, pushing the company’s market value above $7 billion. This strong performance comes after founder Bhavish Aggarwal took the company public, despite some doubts about its initial valuation.
The company’s recent IPO, the largest in India in two years, attracted a lot of attention from investors. The rapid rise in Ola’s stock price has helped Aggarwal achieve his target valuation sooner than expected, thanks to high demand in India’s booming IPO market. Ola Electric, the country’s biggest e-scooter maker, went public at a lower valuation after some investors raised concerns about its profitability.
“There’s a strong belief among investors in India’s electric vehicle future,” said Aishvarya Dadheech, Chief Investment Officer at Fident Asset Management Pvt. He added that the surge in domestic investment is pushing people to explore new opportunities, with the electric vehicle sector being a major focus.
Ola’s successful market debut follows a trend of other Indian tech companies, like Zomato and PB Fintech, which have also seen their shares more than double this year. However, experts note that while many of these companies were losing money when they first went public, they kept investor interest by focusing on profitability—a key challenge for Ola as well.
Despite the excitement, Ola, backed by big investors like SoftBank and Tiger Global, reported growing losses of 15.9 billion rupees ($189 million) for the financial year ending March 2024. On Wednesday, Ola’s stock was volatile, swinging between gains and losses.
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