Ola Electric Listing Day Strategy: The stock of electric scooter maker Ola Electric has had a sluggish listing in the market today. However, the stock has strengthened by 17 percent from its IPO price in intraday. This stock was listed on BSE today at a price of Rs 76, while the IPO price was also Rs 76. At the same time, in trading, it strengthened by 17 percent from the IPO price to reach Rs 89. It received a subscription of about 4.5 times overall. So should the stock be sold after making a profit or should it be held?
What to do now in stock
Shivani Nyati, Head of Wealth, Swastika Investmart, says that electric vehicle leader, Ola Electric Mobility Limited had a flat market debut. Earlier only 4.5 times subscription and now flat listing shows the challenges faced by the company in gaining investor confidence. While Ola Electric’s vision for the EV market is very ambitious. The company’s current financial performance, continuous losses and highly competitive environment have reduced investor enthusiasm.
The flat listing highlights the need for Ola Electric to demonstrate a clear path to profitability and effectively navigate the complexities of the EV market. Investors are advised to exit and book modest profits. But investors who want to take risk can maintain their position by keeping a stop loss below 70.
Also read: Big relief for Manish Sisodia, gets bail from Supreme Court, will come out after 17 months
What is the growth strategy of the company
India Centric EV Product with India First Strategy
Continue to invest in research and development to advance technological capabilities and optimize costs
Creation of an EV hub with vertically integrated manufacturing and supply chain to improve cost efficiency.
Developing cell technology and strengthening in-house manufacturing capabilities.
Expanding product portfolio to increase market penetration. Strengthening D2C omnichannel network across sales, services and charging.
Efficient allocation of capital and focus on growth.
Strongly positioned to take advantage of global EV opportunities.
(Source: SBI Securities)
(Disclaimer: Advice or information regarding investing in shares (IPO) has been given by experts and brokerage houses. These are not the personal views of Financial Express. There are risks in the market, so take expert advice before investing.)
