Home » Ola Electric Soars 20% on Market Debut, Largest Indian IPO in Two Years
The Bengaluru-based company, backed by prominent investors such as SoftBank and Temasek, saw its shares rise to Rs 91.20 after opening at Rs 76, the upper end of its Rs 6,100 crore IPO price range. Despite the strong performance, the company’s market valuation of Rs 40,000 crores was lower than its October 2023 private funding round valuation of Rs 45,000 crores.
Ola Electric has emerged as the dominant player in India’s electric two-wheeler market, holding a 46% market share. Since launching its first electric scooter in December 2021, the company has sold over 3.3 lakh units in the financial year ending March 2024.
However, profitability remains a challenge. In the last financial year, Ola Electric reported a net loss of Rs 1,600 crores and an EBITDA loss of Rs 1,300 crores on annual revenue of Rs 5,000 crores.
To strengthen its position, Ola Electric is investing heavily in vertical integration, including developing its own battery cell technology and expanding its manufacturing capacity, with plans to reach 20GWh by Q2 2026.
The future of India’s electric vehicle market is promising, even with recent cuts in government subsidies. Investment firm Macquarie forecasts electric two-wheeler penetration rates of 7%, 10%, 13%, and 16% for fiscal years 2025, 2026, 2027, and 2028, respectively. Ola Electric is more optimistic, projecting a market share between 41% and 56% by fiscal year 2028.
As Ola Electric navigates its new role as a public company, its ability to sustain growth, achieve profitability, and adapt to the evolving Indian EV market will be closely watched by investors and industry observers alike.