Carnelian sold Ola shares within just one week of buying in the IPO; Here's why

Khemani currently favours sectors like private banks, select NBFCs, insurance companies, IT, cybersecurity, pharma, chemicals, CDMO, and others.

Srushti Vaidya

November 29, 2024 / 23:58 IST

Vikas Khemani, founder of Carnelian Asset Management and Advisors.

Carnelian Asset Management and Advisors exited Ola Electric just a week after buying the shares of the company in the initial public offering, said founder Vikas Khemani, in a quarterly call with investors.

The reason – the targeted returns that the fund manager thought would be achieved in three years were achieved in just a week’s time. The stock, within a week of listing gave close to 100 percent returns, post which it has fallen almost lost 50 percent.

Incidentally, Khemani, in an earlier interaction with Moneycontrol, had said that he was positive on Ola Electric, highlighting that the company has a 35-40 percent market share and is launching new vehicles. “They will turn profitable this year, and once that happens, they could become a large player in the automobile industry,” Khemani had said.

Meanwhile, Carnelian has added Hyundai Motors and Spicejet in its portfolio. Hyundai, it believes, is a good play on domestic consumption as well as exports. While with Spicejet it feels that there is a good turnaround play possible with the kind of capital the company has.

Khemani currently favours sectors like private banks, select NBFCs, insurance companies, IT, cybersecurity, pharma, chemicals, CDMO, and others. On the other hand, he is watchful of sectors where valuations are “defying laws of gravity” like capital goods, infrastructure, defence, and railways.