Ola Electric surged during the company's trading debut in Mumbai
on Friday valuing the company at$4.8 billion. That's
as investors bet on greater adoption of electric vehicles in
India. The world's largest market for two wheelers.
Ola Electric's$734 million. IPO is India's biggest so
far in 2024. And the adoption of evs in
India is still low but it's rising as Prime Minister
Narendra Modi's government promotes clean energy electric dominates sales of
electric scooters in India having launched its first model just
three years ago. As of July, it had
39% market share. Analysts said investors were also optimistic
about Ola Electric's foray into motorcycles. The company is
expected to launch its range of electric models next week
. However, while Ola's revenues have soared, it
has yet to turn a profit in the year to
the end of March, the company's sales rose 90%
year on year but losses widened 8%. The company
plans to invest its ipo proceeds into manufacturing its own
battery cells. It has pinned its profitability on this
as manufacturing their own battery cells should make their scooters
more affordable.