Key Points:
- Promoter stake sale raised ₹32.5 billion, worrying investors.
- Market share fell to 7.19% with registrations down 50% in November.
- Quarterly revenue dropped 46%, and losses widened to ₹4.18 billion.
Ola Electric shares slid to a fresh 52-week low Thursday as founder Bhavish Aggarwal sold shares for a third straight session, extending a weeklong divestment that has raised investor concerns despite company assurances.
Aggarwal offloaded 2.83 crore equity shares at an average price of 31.9 rupees per share, raising about 9.03 billion rupees, according to exchange disclosures. The sale came as Ola Electric’s stock fell sharply during intraday trade, deepening losses from its post-listing highs.
With the latest transaction, Aggarwal has sold more than 9.6 crore shares over three consecutive trading sessions this week. The cumulative value of the stake sales stands at nearly 32.5 billion rupees.
Earlier this week, Aggarwal sold shares worth about 9.2 billion rupees on Dec. 16, followed by a larger divestment of roughly 14.2 billion rupees on Dec. 17, filings showed.
Promoter Selling Weighs on Stock
The continued selling has kept pressure on Ola Electric shares, particularly as the stock trades near record lows. Market participants remain wary of sustained promoter divestment, even as the company maintains that the sales are limited in scope.
Ola Electric has said the transactions are part of a planned effort to clean up promoter-level finances. The company previously clarified that the sales are a “one-time monetisation exercise” intended to repay a 2.6 billion-rupee promoter loan and fully unwind pledged shares.
The company has also said the move “does not signal any dilution of promoter control or long-term commitment to the company,” seeking to reassure investors amid heightened volatility.
Proceeds from earlier tranches were used to address the promoter’s personal balance sheet and remove what the company described as a pledge overhang on shares.
Sales Slump and Market Share Erode
Despite the explanations, the timing of the sales has unsettled investors as Ola Electric grapples with operational and market challenges. The company slipped to fourth place in electric two-wheeler sales in November, with market share shrinking to 7.19 percent.
Registrations fell sharply month-on-month, dropping about 50 percent to 8,254 units in November from 16,013 units in October, according to industry data. The decline reflects softer demand, rising competition and execution hurdles in the electric two-wheeler segment.
Ola Electric shares have now fallen significantly from levels seen after its market debut, weighed down by promoter selling, weak sentiment toward electric vehicle stocks and concerns over demand sustainability.
Financial Performance Adds Strain
The pressure on Ola Electric shares is further compounded by a weak quarterly performance. For the second quarter of the current fiscal year, Ola Electric reported a 46 percent drop in revenue to 6.6 billion rupees.
Losses widened to 4.18 billion rupees during the quarter, underscoring the challenges the company faces as it scales operations in a crowded and price-sensitive market.
While Ola Electric continues to invest in products and capacity, analysts say near-term headwinds remain, including intense competition, margin pressure and the need to stabilize volumes.
The company has not indicated whether further promoter stake sales are planned beyond the current week.
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