Ola Electric emphasized that the certification is a reflection of its robust manufacturing capabilities and places the firm in a favorable position to capitalize on the government's efforts to promote domestic electric vehicle production and supply chains.
Ola Electric's stock jumped 4.41% to Rs 143.80 a share on the BSE, representing an 89.21% increase over its Rs 76 IPO issue price. The stock reached a high of Rs. 157.53 during the previous session.
The increase follows HSBC's initiation of coverage on the company, which it rates a "Buy" with a target price of Rs 140. With a gain of about 8% on Tuesday to reach Rs 157.53, the stock handily exceeded that objective and increased by 107% from its IPO price.
But the stock dropped hard on Tuesday, wiping out nearly all of the gains it achieved in today's early trading. At 10:56 am, Ola Electric shares were up 0.54% at Rs 138.47. It should be mentioned that Ola Electric Technologies already obtained accreditation at the Auto PLI Conclave in January 2024 for its S1 Air model.
The government's PLI program was created to encourage homegrown manufacturing and assist businesses in increasing their output. Starting with Fiscal 2024, Ola Electric Technologies will be eligible for incentives as part of the program for a maximum of five consecutive fiscal years.
After evaluating the goods and confirming the localization of components, the Automotive Research Association of India (ARAI) awarded the certification, which represents another important step forward for the company in the EV industry.
In Wednesday's trading, shares of Ola Electric Mobility Ltd., led by Bhavish Aggarwal, increased by 4%. The company stated that Ola Electric Technologies, a material subsidiary, had received certification for compliance for two of its scooters under the Production Linked Incentive (PLI) scheme for automobiles and auto components.
Together, the S1 X 3 kWh and S1 X 4 kWh scooter models account about half of Ola Electric's total income. Ola Electric Technologies stated that it would be able to increase its profitability now that the PLI was in place.
On the BSE, Ola Electric shares increased 4.41 percent to Rs 143.80. The stock has increased by 8921% since its Rs 76 IPO issue price. In the prior session, it peaked at Rs 157.53.
Ola Electric Technologies already obtained the S1 Air certificate at the January 2024 Auto PLI Conclave. "A major accomplishment in furthering India's electric vehicle (EV) ambition is the PLI certification we received for both luxury and mass-market goods, which validates our vertically integrated manufacturing capabilities. Ola Electric stated that the government's ambitious Auto PLI Scheme is set to improve regional supply chains, support homegrown manufacturing, and help businesses realize economies of scale.
Following product testing and component localization inspections, The Automotive Research Association of India (ARAI) awarded the certification. Starting with Fiscal 2024, Ola Electric Technologies is eligible for incentives under the program for a maximum of five consecutive fiscal years.
With a 'Buy' recommendation, HSBC just began covering Ola Electric. However, Ola Electric Mobility shares easily surpassed HSBC's Rs 140 objective in the few days after the report's August 15 release. The stock increased 7.87 percent on Tuesday, reaching a high of Rs 157.53 on the BSE. This was 107% more than the issue price of the IPO.
