MUMBAI: Ola Electric made a silent debut on the exchanges with its shares getting listed at par against its issue price of Rs 76 on the BSE. However, post-listing, it witnessed strong buying and hit a 20% upper circuit limit on Friday.
The stock ended the session at Rs 91.19 apiece and its market capitalisation surpassed the Rs 40,000 crore mark. The listing and surge in share prices doubled founder Bhavish Aggarwal’s fortune. According to the Bloomberg Billionaires Index, the 38-year-old entrepreneur added $1.5 billion to his wealth on Friday, taking his net worth to $2.7 billion.
The shares defied the negative premium it was commanding in the unofficial premium market. Ahead of the listing, Ola Electric shares on Thursday were trading at a discount of ₹3 in the unlisted market.
“Ola Electric had a strong market debut, defying grey market expectations of a 4-5% discount. The positive performance is attributed to its healthy long-term outlook, 38% market share, benefits from the PLI scheme, and advantages of vertical integration,” said Vinod Nair, Head of Research, Geojit Financial Services.
Commenting on the listing, Shivani Nyati, Head of Wealth, Swastika Investmart, the flat listing performance, coupled with a mere 4.45 times subscription, underscores the challenges the company faces in gaining investor confidence.
+ There are no comments
Add yours