(Bloomberg) -- Ola Electric Mobility Ltd.’s market cap surged by $1 billion in just two days after the company launched a new electric scooter for workers involved in quicker deliveries.
Shares of India’s biggest electric-scooter maker surged about 29% in two days through Thursday, boosted by the company’s efforts to tap opportunities in the country’s vast workforce that’s in demand from quick commerce firms. Shares of the company, which debuted in August in one of the nation’s biggest initial-share sales, came under pressure recently amid its struggles with rising consumer complaints.
Launched at an introductory price of 39,999 rupees ($474) Ola Gig scooter’s base version is designed for the needs of gig workers who are involved in shorter trips, according to the company.
Ola also introduced a new version of its S1 scooter aimed at urban commuters, especially young professionals, students, women and elderly riders. The products are aimed at “democratizing electric mobility” in the country, the company said in a statement.
While Ola’s shares are still more than 35% off their peak reached soon after the listing in August, analysts are turning bullish on the firm. Citigroup Inc. initiated coverage on Ola with a buy recommendation this week, while Goldman Sachs Group Inc. and HSBC also have a buy rating on the company.
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