The sudden surge of Ola Electric’s share price has perplexed experts and investors. Nonetheless, they recommend that investors keep in the stock because it is a clear energy investment.
After it was listed on August 9, the worth of the stock has increased by 92% above its initial price of Rs 76 as of August 19, bringing its market value to slightly more than Rs 63,000 crore. The issue received 4.45 subscriptions. Ambareesh Baliga, a market analyst quotes, “It is surprising that despite the pessimism during the IPO and a tepid listing, the stock has managed to move sharply and has gathered good momentum. The fundamentals haven’t changed in the last fortnight, so the logic for such a sharp run up is hard to find. As a strategy, however, traders or investors can chase the momentum but with strict stop-losses.”
On Monday, August 19, the Ola Electric share price achieved a 10-percent upper circuit, reaching an all-time high of Rs 146.03 on the BSE. In comparison, the BSE benchmark, the Sensex, closed 12 points, or 0.02 percent down. Ola Electric’s circuit restriction was reduced from 20% to 10% last Friday, August 16, following a stunning surge in just five sessions.
As per Deven Choksey, the managing director of DRChoksey FinServ, a big portion of the recent purchase in Ola Electric stock can be attributed to massive liquidity movements within the markets as well as institutions increasing exposure to fresh firms on the block. He quoted, “The stock’s current valuations seem to be factoring in most of the developments and they appear slightly stretched in our view. Investors, who bought the shares at IPO price, may book partial profit and enter at a lower price later.”