Indian EV Maker Ola Electric Jumps in Trading Debut — Update

By Kosaku Narioka

Shares of Ola Electric Mobility, an Indian electric scooter maker, jumped in their trading debut, reflecting strong investor interest in the nascent electric-vehicle market of a fast-growing South Asian economy.

Ola Electric shares were recently 20% higher at 91.18 rupees after opening flat on the BSE exchange in Mumbai on Friday, compared with the initial public offering price of 76 rupees.

The SoftBank Group-backed electric scooter maker raised 61.46 billion rupees, equivalent to $731.6 million, through an IPO of 808.7 million shares.

The listing comes as India's stock market has hit successive record highs in recent weeks, buoyed by the country's strong growth at a time of economic uncertainty in regional rival China and growing optimism in policy continuity following general elections this past spring.

India has hosted several billion-dollar-plus stock offerings this year, including telecom company Vodafone Idea's follow-on offering of 180 billion rupees in April.

Ola Electric's revenue grew 90% to 50.10 billion rupees in the year ended March, though it posted a net loss of 15.84 billion rupees.

The electric scooter maker delivered about 330,000 vehicles in its latest fiscal year, more than doubling the previous year's sales volume. It began deliveries of its first scooter in December 2021.

Ola Electric said it will use the proceeds from the IPO for capital expenditure, research and development and other general purposes. About 89% of the shares offered were newly issued.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

August 09, 2024 05:19 ET (09:19 GMT)

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