The largest manufacturer of electric two-wheelers in India, Ola Electric, saw a 20% increase in its stock price on Friday when it went public, becoming India's biggest IPO in 2024

The Bengaluru-based company's shares, which are backed by SoftBank and Temasek, surged to as much as ₹91.18 (about $1.1) after initially trading at ₹76, the upper end of its initial public offering (IPO) price range. The business filed to go public at a value that was much below the $6.5 billion to $8 billion range it had originally sought for the IPO and 26% less than the $5.4 billion it achieved in a financing round in October 2023.

With the stock at ₹90, Ola Electric has a $4.75 billion market value right now.

With a 46% market share, Ola Electric has become the industry leader in India's electric two-wheeler market. In the fiscal year that concluded in March 2024, Ola sold more than 330,000 electric scooters since launching its initial model in December 2021.

However, the business is not yet profitable. In its most recent financial year, it reported a net loss of ₹16 billion (about $200.5 million) and an EBITDA loss of ₹13 billion (roughly $162.8 million) on yearly revenue of ₹50 billion (roughly $626.3 million).

In an effort to better control quality, supply, and costs, the company has been investing in vertical integration. It also has plans underway to create its own battery cell technology and expand its manufacturing capabilities. By the second quarter of 2026, capacity is supposed to be increased to 20GWh.

India's electric vehicle sector has a lot of room to develop. The research and investment banking firm Macquarie projects that for the fiscal years 2025, 2026, 2027, and 2028, respectively, market penetration rates for electric two-wheelers will be 7%, 10%, 13%, and 16% of the total two-wheeler market in the nation.