Ola Electric Shares Plunge to New 52-Week Low

Ola Electric's share price is facing significant challenges as it drops nearly 4%, hitting a fresh 52-week low of approximately Rs 31.42. This downturn is primarily attributed to founder Bhavish Aggarwal's recent stake sale, which has unsettled investor sentiment. The company's stock has been on a downward trend, marking its weakest point since its listing.

In a concerning move for investors, Bhavish Aggarwal offloaded shares worth around Rs 142 crore on Wednesday, following another sale of shares valued at nearly Rs 92 crore just a day earlier. This rapid succession of sales has resulted in a total stake worth over Rs 230 crore being sold in two days, raising alarms within the market.

Despite Ola Electric's attempt to reassure investors by clarifying that these transactions were a one-time, limited monetization of a small portion of the promoter's personal holdings, confidence remains fragile. The company stated that the sales were necessary to fully repay a promoter-level loan of INR 260 crore and that a significant portion of the previously pledged shares would be released, which aims to alleviate some market concerns.

However, this reassurance has not been enough to stop the stock's decline. Ola Electric shares have dropped nearly 5% in the previous trading session and have seen a total decline of about 12% over the past five trading days. In the last month alone, the shares have plummeted by over 24%, with current prices nearly 59% below the IPO price of Rs 76.

Despite these challenges, Ola Electric's promoter group is expected to maintain approximately 34% ownership in the company, which is considered one of the higher promoter holdings among newly listed tech firms. The company maintains that there is no dilution of control or change in long-term conviction, but the ongoing sell-off has raised concerns among investors.

As the market continues to absorb the impact of these transactions, it remains to be seen how Ola Electric will regain investor confidence and stabilize its share price in the coming days.