Ola Electric surges 70% in 3 days: What's driving rally?
What's the story
Ola Electric has witnessed a significant surge in its share value, with a 71% increase from the initial listing price of ₹76. This substantial rise occurred within three days of the company's debut on the stock market. The escalation propelled the firm's market capitalization beyond ₹51,000 crore. The shares reached an all-time high of ₹130 on BSE after a nearly 19% surge in an early trading session today.
Market insight
Analyst's perspective on Ola Electric's IPO performance
Parth Shah, a Research Analyst at StoxBox, provided insights into Ola Electric's IPO performance. He noted that despite a positive response during the subscription period, the Grey Market Premium (GMP) turned negative due to a shift in market sentiment. Shah emphasized that while GMP can provide an overview of investors' expectations, it should not be the sole determinant in investment decisions.
Market leadership
Ola Electric's market dominance boosts share price
The rise in Ola Electric's share price is also linked to its dominant position in the electric two-wheeler market. The company currently holds a significant 35% share of this rapidly growing sector. This strong market presence has likely contributed to investor confidence, driving up the value of the company's shares post-IPO. Ola Electric has announced that its board will convene its first meeting post-listing on August 14 to disclose the Q1 results for the financial year 2025.