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Shares of Ola Electric rose 4% to Rs 36.85 following market opening on Friday
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The company received a Rs 366.78 crore incentive under the PLI scheme for FY 2024-25
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The PLI-Auto Scheme aims to boost domestic manufacturing and advanced automotive tech
Shares of Ola Electric Mobility Ltd. rose by 4% at Rs 36.85 a piece. The stock closed at 35.30 on Thursday and rose as the markets opened on Friday.
Ola Electric received a sanction order from the Ministry of Heavy Industries for the release of incentives amounting to Rs 366.78 crore under the production-linked incentive scheme.
The sanction pertains to the demand incentive for the determined sales value for FY 2024-25, and authorises a payment of Rs 366.78 crore to be released through IFCI Limited, the designated financial institution for disbursement under the scheme, the Bengaluru-based firm said in a statement.
The incentive has been sanctioned in accordance with the applicable terms and conditions of the PLI-Auto Scheme, as amended from time to time, it added.
The PLI-Auto Scheme is a flagship initiative of the Government of India aimed at strengthening domestic manufacturing, encouraging advanced automotive technologies, and enhancing India's global competitiveness in the auto and auto components sector.
Analysts note that while the PLI disbursement provides much-needed liquidity, the company continues to navigate a "troublesome" phase regarding profitability, having reported losses for several consecutive quarters. However, the infusion of government funds is viewed as a "strong endorsement" of Ola's manufacturing scale.
Ola Share Price Today
Ola Share Price Today
Ola Share Price Today
The scrip rose as much as 4.11% to Rs 36.75 apiece on Friday. This compares to a 0.22% decline in the NSE Nifty 50 Index.
It has fallen 57.39% in the last 12 months and 60.94% year-to-date. The relative strength index was at 40.44.
Out of eight analysts tracking the company, three maintain a 'buy' rating, one recommends a 'hold,' and four suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target of Rs 45.88 implies a upside of 24.4%.
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