Ola Electric Mobility shares pared almost all gains to trade just 4 percent higher at Rs 113 as investors booked partial profit. Today, shares climbed an intraday high of 18 per cent continuing their stellar run after hitting the 20 per cent upper circuit for two consecutive days.
This surge came in just a day ahead of Ola Electric Mobility’s Q1 results announcement on August 14. The Bhavish Aggarwal-led company will hold its first board meeting since listing to review and approve the unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, according to a company filing.
Meanwhile, Ola Electric is gearing up to unveil its first electric motorcycle on Independence Day. Although official details remain under wraps, the company has been working on this project for some time. In August 2023, Ola showcased concept models, including the Diamondhead, Adventure, Roadster, and Cruiser.
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.
The surge in the share price of Ola Electric is also attributed to its leadership in the electric two-wheeler market, holding a 35 per cent share.
Of the total allocation, 40 per cent of the anchor book was allocated to domestic mutual funds, while global investment firms received the lion’s share at around 54 per cent. Among domestic mutual funds, SBI MF, HDFC MF, and Nippon India MF secured relatively higher allotments in the anchor portion compared to other funds.
At about 9:42 am, shares of the company were trading at 114, up 5 per cent from the last close on the NSE.
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