Ola Electric Shares Hit 52-Week Low Amid Stake Sales

Ola Electric shares have recently experienced significant turbulence, culminating in a drop of nearly 4% to approximately Rs 31.42. This decline has marked a fresh 52-week low for the company, raising concerns among investors. The drop in share price is primarily attributed to a series of stake sales by founder Bhavish Aggarwal, who sold shares worth over Rs 230 crore within just two days.

The first transaction, which involved the sale of shares worth about Rs 142 crore, occurred on a Wednesday. This was closely followed by another sale of shares worth nearly Rs 92 crore the day before. In total, around 6.8 crore shares were sold in quick succession, which has triggered fresh selling pressure and unsettled the market.

Despite a statement from Ola Electric clarifying that these transactions represent a one-time, limited monetization of a small portion of the promoter's personal holdings, investor confidence has remained fragile. The company reassured investors that these sales were necessary to fully repay a promoter-level loan amounting to INR 260 crore, thereby releasing previously pledged shares.

However, despite these reassurances, the stock price continued to decline. Over the past week, Ola Electric shares have fallen about 12%, and in the last month, the shares have plummeted more than 24%. Currently, the stock is trading nearly 59% below its IPO price of Rs 76, which raises concerns about the company’s market performance.

Ola Electric has stated that post the transactions, the promoter group will still hold approximately 34% stake in the company, which remains one of the highest stakes among new-age listed firms. The company emphasized that there is no dilution of promoter control or change in their long-term conviction regarding Ola Electric.

Despite these facts, the sharp decline in share price reflects the ongoing caution among investors as the market continues to absorb the impact of rapid promoter sell-downs. As Ola Electric navigates these challenges, the future of its stock performance remains uncertain, highlighting the need for investors to approach with caution.