Ola Electric hits all-time low; down 13% in 3 days; why is stock falling?

From the past two days, Ola Electric founder-promoter Bhavish Aggarwal is selling stakes through open market as part of a "one-time, limited monetisation of a small portion"; check details

Ola Electric Mobility shares slipped 4.2 per cent, logging an all-time low at ₹31.54 per share. The stock fell for the third consecutive session, declining over 13 per cent. The selling pressure on the counter came amid promoter Bhavish Aggarwal offloading stakes.

 

At 9:39 AM, Ola Electric’s share price was trading 3.89 per cent lower at ₹31.64 per share on BSE. In comparison, the BSE Sensex was down 0.14 per cent at 84,442.54. 

 

The company has a total market capitalisation of ₹13,951.45 crore. Its 52-week high was at ₹99.9, and its 52-week low was at ₹31.54. 

 

From the past two days, Ola Electric founder-promoter Bhavish Aggarwal is selling stakes through open market transactions as part of a "one-time, limited monetisation of a small portion" to fully repay a promoter-level loan amounting to ₹260 crore.  

 

“With this, all of the previously pledged 3.93 per cent shares will be released, removing a critical overhang,” the filing read. 

 

As per data from the National Stock Exchange (NSE) bulk deal data, Aggarwal offloaded 41.9 million shares, or 1 per cent of Ola Electric, on Wednesday for ₹33.96 per share. A day earlier, he had sold 26.2 million shares — equivalent to a 0.59 per cent stake — at a price of ₹34.99 per share.

 

Post the transaction, the promoter group would continue to hold approximately 34 per cent in Ola Electric, among the highest across new-age listed companies. As of September, promoter shareholding stood at 36.78 per cent.

 

There is no dilution of promoter control or change in the long-term conviction, according to the filing. 

 

It also said the transaction is being carried out to eliminate all promoter pledges, which can introduce avoidable risk and volatility. The firm said it is part of the founder's conviction that Ola Electric should operate with zero pledge overhang, and that he should fully unwind the leverage.

 

The firm said the transaction is being executed entirely at the promoter’s personal level and would have no impact on Ola Electric’s operations, governance, or strategic direction. The firm’s focus remains firmly on building a globally competitive, India-first electric mobility and clean energy company.