New E-Motorcycles Propel Ola Electric Stock 20% Higher, Elevating Market Valuation to $7 Billion

Ola Electric Mobility, India's leading e-scooter manufacturer, saw its stock surge by 20% on Friday, pushing its market valuation to 586.64 billion rupees ($6.99 billion). This significant rise follows the company's launch of a new range of electric motorcycles and growing investor confidence that Ola Electric will reduce costs by producing its own batteries.

The introduction of these e-motorcycles is expected to heighten competition in India, the world's second-largest two-wheeler market. Ola Electric is now set to challenge established players like Bajaj Auto, TVS Motor, and Hero Motocorp.

Two-wheelers remain the dominant mode of transportation in India, with 18 million units sold last year. Ola Electric, which went public on August 9 following a $734 million IPO, has seen its shares soar by 75% from the initial offering price of 76 rupees.

Previously valued at $5.4 billion during a pre-IPO funding round in September 2023, the company had to lower its IPO valuation target to $4 billion due to a global tech market correction and to attract more investors. HSBC noted that Ola Electric’s strategy to produce its own batteries and manufacture most of its EV components domestically is likely to appeal to investors interested in India's growing electrification sector.

Source: Reuters