Ola Electric shares reverse early losses; stock now trades 2.5% higher

At 2:15 pm, the stock was trading at ₹129.29, up 2.44% on the BSE. Earlier, the stock hit a low of ₹118.57 against the previous close of ₹126.21.

Shares of the electric two-wheeler company made a listless debut earlier this month. However, after listing, shares witnessed humongous buying interest.

On August 9, the shares were listed at ₹75.99 on the BSE against the issue price of ₹76. Later, it jumped 10.71% to ₹84.14.

On the NSE, shares of the firm were listed at par with the issue price of ₹76. Later in the trade, the stock soared 10.80% to ₹84.21.

Post-listing, shares of the company have rallied significantly. The stock hit a record high of ₹157.53 on the BSE on August 20.

The company's ₹6,145-crore initial public offer was overall subscribed 4.27 times. The IPO had a price band of ₹72–₹76 per share.

The public issue, the first by an electric vehicle maker, had a fresh issue of up to ₹5,500 crore and an offer-for-sale (OFS) of up to 8,49,41,997 equity shares.

In the first quarter of this fiscal, Ola Electric's automotive segment EBITDA was almost break-even, but for a one-time reversal of about Rs 30 crore, it had to pay for a change in standard operating procedure in the government for PLI rules, he said, adding that the cell segment is at a different stage of evolution.

Ola Electric's net loss widened in the first quarter to Rs 347 crore from Rs 267 crore in the corresponding period a year ago. In FY24, the company's net loss was Rs 1,586 crore.

When asked if the electric car project was off the table, Aggarwal said, "Yes. We are not working on it right now. Our vision is to build products relevant for India and build technologies to enable those products at scale, and we're going in a sequence, two-wheelers and then other products".

"India needs to build a sustainable paradigm in energy and automotive. The global solution to sustainability is electric luxury cars. That's not relevant for India. India is (electric) two-wheelers, three-wheelers, maybe small cars," he said.