“Pursuant to Regulation 29 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), we wish to inform you that a meeting of the Board of Directors of Ola Electric Mobility Limited (“the Company”) is scheduled to be held on Wednesday, August 14, 2024, inter alia, to consider and approve the unaudited standalone and consolidated financial results of the Company for the quarter ended June 30, 2024,” the company said in a filing to the exchanges.
Ola Electric was listed on Friday, August 9 disappointing investors as it got listed at par with the issue price of Rs 76. However, later during the day, the stock surged 20% to hit an upper circuit high of Rs 91.20 on NSE
The Rs 6,146 crore much-hyped IPO, which closed on August 6, was booked only 4.26 times – well below the Street expectations. Anchor investors in the IPO included Nomura, HDFC Mutual Fund and SBI Mutual Fund.
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“Allotted investors should understand the risk of negative net cash flows in the past, and future negative cash flows which could adversely impact its consolidated financial condition post-listing,” said Prashanth Tapse of Mehta Equities.
“Despite the company offering its shares at a well discounted price lower than last private placement valuation, IPO investors were not so bullish on the loss making company and may wait for better lower pricing 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,” he said.
While the company’s vision for the EV market is ambitious, investors are worried about the company’s current financial performance, marked by consistent losses, and a highly competitive landscape.
The shares of Ola Electric on Friday closed at Rs 91.18, locked at the 20% upper circuit on BSE.
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