Ola Electric shares soar, rise 41% over IPO price: Should you buy, sell or hold?

Ola Electric shares rose 17% today as the stock extended its upward trend from last session when high investor demand was seen. The stock of largest e-scooter manufacturer in India rose 20% over the maximum permitted price of ₹91.20, more than the ₹76 per share initial public offering price on Friday.
The ₹6,145-crore initial public offer drew 4.27 times subscription on the last day of bidding (August 6). The IPO opened on August 2 at a price band of ₹72-76 per share.
Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities, said, “Despite receiving demand well below street expectation, Ola Electric share price listed on a flat rate, the fear of discounted listing was out of woods and huge buying was seen post listing. The long term story is intact and markets are focusing on news that Ola Electric Bike to Launch in India on August 15. Considering all the factors, we advise only risk taking investors to continue to hold with a minimum holding period of 2-3 years and recommend to accumulate on every dip to be part of long term journey.”
The IPO included an offer for sale (OFS) of up to 8,49,41,997 equity shares and a fresh issue of up to ₹5,500 crore. Net proceeds from the IPO will be used by the company to expand the capacity of its cell manufacturing facility, product development and research and debt repayment.