BENGALURU: Shares of a leading electric vehicle manufacturer based in India jumped 20% on their first day of trading on the nation's stock exchanges last week, valuing the company at over $5 billion and lifting its founder into the billionaire ranks.
The company, which is making strides in the country's growing electrified transport sector, saw active trade of its shares that began pricing at the IPO level of Rs 76 apiece. By the end of trading at the BSE and NSE on Friday, the scrip had risen to Rs 91.18 – a solid premium over the issue price.
This 20% surge raised the valuation of the EV startup to Rs 326 billion. Its founder and Managing Director, who still holds the majority 36.78% stake, saw the value of his shareholding balloon to Rs 119 billion. He had earlier raised Rs 2.3 billion through an offering of some of his shares as part of the IPO process.
The strong debut is being seen as a endorsement of the company's efforts to lead India's shift to more sustainable mobility solutions. It has been manufacturing a line of electric two-wheelers as well as core components in-house. Backers will hope this upbeat reception helps energize the long-term growth plans.
All eyes will now be on how the company and its stock trade going forward, as it seeks to drive further adoption of its green products both at home and overseas. The successful opening chapter at the stock exchanges provides a boost to scaling up initiatives.
