BENGALURU, Aug 16 Reuters India39;s top escooter maker Ola Electric Mobility surged 20 on Friday to reach a valuation of 586.64 billion rupees 6.99 billion, after it launched a new line of motorcycles and on bets it will lower costs by using its own batteries.

The emotorcycle launch is set to intensify competition in the world39;s secondlargest twowheeler market, where Ola Electric will face off with bigger rivals like Bajaj Auto, TVS Motor and Hero Motocorp.

Twowheelers dominate Indian roads, with 18 million units sold last year.

Ola Electric, which listed its shares on Aug. 9 after a 734 million initial public offering IPO, has seen its shares jump 75 over the launch price of 76 rupees.

It was valued at 5.4 billion in a September 2023 preIPO funding round. But Ola Electric had slashed its valuation target to 4 billion for its IPO due to a correction in global tech companies and to attract participants to the stock offering.

The escooter maker39;s plan to build an allimportant battery and its efforts to make most of its EV parts in the country should attract investors looking to play the electrification theme in India, HSBC said in a note.

HSBC has a buy rating on the shares and a price target of 140 rupees, citing regulatory support and the company39;s ability to reduce costs.

On Wednesday, Ola Electric reported a wider firstquarter loss, hurt by subsidy cuts. On Thursday, the company launched a new series of emotorcycles, expanding into an untapped segment. It…