Ola Electric Mobility surges up to 19% after at par listing: Here's what investors can do

Ola Electric Mobility listing: After listing on expected lines, shares of the EV company gained up to 18 per cent to day's high of Rs 89.6, while at the last count it was up by 17.36 per cent at Rs 89.19.

What should investors do?

Ahead of the listing Shivani Nyati, Head of Wealth, Swastika Investmart said this flat performance, coupled with a mere 4.45 times subscription, underscores the challenges the company faces in gaining investor confidence.

While Ola Electric's vision for the EV market is ambitious, the company's current financial performance, marked by consistent losses, and the highly competitive landscape have tempered investor enthusiasm. The negative grey market sentiment prior to listing further reflected these concerns.

The flat listing highlights the need for Ola Electric to demonstrate a clear path to profitability and navigate the complexities of the EV market effectively. Investors are suggested to exit and book a minor profit, but those who want to take risks may hold their position by keeping a stop loss below 70, she added.

About the issue

The company's Rs 6,146 crore IPO is a combination of a fresh issue of equity shares up to Rs 5,500 crore and an offer for sale (OFS) of 8.49 crore equity shares worth Rs 645.56 crore, at the upper end of the price band, by promoters and investors. This takes the total issue size to Rs 6,145.56 crore.

The issue got decent recent response with the issue garnering a subscription of 4.27 times the shares on offer on August 6.

Anil Singhvi's view on Ola Electric listing

 Zee Business Managing Editor Anil Singhvi gave an avoid call on the stock and said that those who want to buy should wait for the listing.