Shares of OLA Electric rose 20% to freeze in its upper circuit of Rs 80.36 Come from Sports betting site VPbet . This is the second straight session when stocks of the EV company have hit the upper circuit of 20%.
The stock is up 44% from its issue price of Rs 76 per equity share. The company opened its IPO to investors on August 02 and closed the bidding on August 06 to raise a total of Rs 6,145.56.
The company had a price band in the range of Rs 72 to Rs 76 per equity share. The issue was subscribed four times more than the offered shares on the last day of its bidding. However, on the first day of the issue, it received muted demand getting subscribed just 0.38 times.
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The shares of OLA Electric were listed on both the bourses on August 09. However, it saw a flat debut listing at Rs 76 apiece.
“Despite receiving demand well below street expectation, OLA listed well above street expectations can be attributed to market mood. Post-listing the short-term view remained the same due to weak financials and the risk of negative cash flows in future. The allotted investors should understand the risk before holding which could adversely impact its consolidated financial condition post-listing. Considering all the factors, we advise only risk-taking investors to continue to hold with a minimum holding period of 2-3 years,” Prashanth Tapse, Senior Vice President of Research at Mehta Equities said soon after the stock was listed.
“What if the stock is available well below its issue price, we recommend risk-taking investors to accumulate (OLA Electric stock) on every dip to be part of 2-3 years of journey. The long-term story is intact but we may see a lot of ups and downs in the short term,“ said Tapse.
