Ola Electric's Valuation Jumps To $7 Bn After Electric Bike Launch
This marks a 75 per cent increase over its post-IPO valuation of USD 4 billion
According to Reuters, Ola Electric Mobility, India's leading e-scooter manufacturer, saw its shares soar by 20 per cent on Friday, closing at Rs 133, pushing its valuation to $7 billion (Rs 58,558 crore). This marks a 75 per cent increase over its post-IPO valuation of $4 billion.
The surge in Ola’s stock price follows the company’s launch of a new line of emotorcycles and expectations of reduced costs through in-house battery production. This expansion positions Ola to compete with industry giants such as Bajaj Auto, TVS Motor, and Hero MotoCorp in India’s competitive two-wheeler market, where 18 million units were sold last year.
Ola’s initial public offering (IPO), valued at Rs 6,146 crore, was the largest to hit the Indian market in over two years, pricing shares at Rs 76. Although the IPO valuation was lower than expected due to a global tech market correction, shares have since rebounded, drawing attention from investors betting on India’s electrification efforts.
HSBC has placed a "Buy" rating on Ola's shares, with a target price of Rs 140, citing the firm’s plans to build an "all-important" battery and manufacture most EV parts domestically. This move could attract further investment, especially as Ola's FutureFactory, which employs 20,000 women, gains attention from ESG-focused funds.
The e-scooter maker plans to equip its vehicles with its own batteries by 2025, aiming to further reduce costs and accelerate India's transition to electric vehicles.
