[ad_1]
Market expert Prakash Diwan said that Ola Electric listing was far better than what he had personally anticipated. “There was a little bit of that softness that was expected given the large float and the response that it got in the IPO. But I do agree this is going be a bellwether game in that sense,” Diwan told CNBC-TV18.
However, Diwan was cautious in his recommendation. “We have made that mistake in some of these new age companies as well. This is not new age in that sense but in terms of behaviour it could be very similar to all the Zomato’s and Paytm’s and Nykaa’s of the world,” he added.
ALSO READ: Ola CEO Bhavish Aggarwal outlines cost-cutting strategies and future projections for profitability
Shivani Nyati of Swastika Investmart believes the company must demonstrate a clear path to profitability to gain investor confidence. The seven-year-old electric vehicle maker made a loss of ₹1,584 crore in the financial year ending March 2024, compared to ₹1,472 crore loss a year earlier.
“The long-term story is intact but we may see a lot of ups and downs in the short term,” Prashanth Tapse of Mehta Equities said. Tapse recommends that investors with risk appetite should be prepared to hold the shares for 2-3 years.
ALSO READ: Meet Hyun Shik Park, the battery boss who has the fattest paycheque in Ola Electric universe
Ola Electric IPO subscription
The IPO of Ola Electric, which was open from August 2-6, received bids for 4.27 times the number of shares on offer, led by decent response from qualified institutional buyers and retail investors.
Ola Electric Mobility raised a total of ₹6,146 crore from its IPO, which comprised of a fresh share sale of ₹5,500 crore and an offer-for-sale (OFS) up to 8.49 crore shares.
₹1,600 crore of the net proceeds will go into research and development. Ola Electric has 870 experience centres, 431 service centres along with its website as on March 31, 2024.
ALSO WATCH: Ola Electric’s Bhavish Aggarwal: EV industry less dependent on FAME subsidy
[ad_2]
Source link