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Shares of Ola Electric surged 20% on their market debut on Friday, valuing the Indian electric vehicle startup at around $4.8 billion.
Ola Electric priced its shares at 76 rupees ($0.91) raising the company more than $730 million via the initial public offering in Mumbai. It is the biggest listing in India this year, according to Reuters.
By 3:52 p.m. local time, shares were trading around 91.20 rupees.
The first-day surge comes as investors bet the company is poised to become a key player in India’s electric vehicle market, at a time when the government is making moves to bolster the industry.
Ola Electric makes electric scooters and only shipped its first product two-and-a-half years ago.
Two-wheelers are the most popular means of transport in India. By 2030, electric two-wheelers in particular are expected to account for 60% to 70% of all new scooter sales in India, according to McKinsey & Company data.
This is the trend Ola Electric is trying to tap into as it prepares to deliver its first electric motorbike product in the second half of 2025.
The startup, founded by high-profile entrepreneur Bhavish Aggarwal, is positioning itself as a company that can do everything from design to manufacturing and batteries, much like Tesla does.
Currently, though, there does not appear to be plans for the company to expand into cars.
Ola Electric has some high-profile investors including SoftBank and Singapore’s investment fund Temasek.
The company said it plans to use the IPO proceeds to pay down debts, for more research and development and to support the expansion of its gigafactory battery plant.
While the company’s revenue rose 90% year-on-year in the year ended March 31, its losses widened. The company is yet to turn a profit.
Aggarwal is also the co-founder of Ola Cabs, a ride-hailing company in India.