Bhavish Aggarwal's Ola Electric shares drop over 12% in one week; details

Shares of Ola Electric Mobility slipped 3 per cent at Rs 70.54 per share, while declining 7.1 per cent from its initial public offering's issue price of Rs 76

Shares of Ola Electric Mobility slipped 3 per cent to hit an intraday low of Rs 70.54 per share, while declining 7.1 per cent from its initial public offering’s issue price of Rs 76. The company listed on the Indian bourses, BSE, and NSE on August 9, 2024.

 

Today’s drop in the stock price came after the company reported a continuing net loss in its second quarter earnings for the financial year 2024-25 (Q2FY25). 

 

Ola Electric Mobility reported a net loss for the September quarter at Rs 495 crore, compared to Rs 524 crore in the same period last year. The company’s earnings before interest, tax, depreciation, and amortisation (Ebitda) loss came in at Rs 379 crore versus Rs 435 crore in the same quarter last year. 

 

 

However, Ola Electric Mobility ’s revenue for the quarter stood at Rs 1,214 crore, reflecting an 39 per cent increase from Rs 873 crore in the previous year.  The company’s deliveries grew 73.6 per cent Y-o-Y from 56,813  in Q2FY24 units to 98,619 units in Q2FY25. 

 

The company is currently the market leader in electric two wheelers, holding a 33 per cent market share till September 2024. “We’re expanding distribution to 2,000 stores by March 2025 from the current 782 in addition to expanding our network partner program,” the company said in its investor presentation.  

 

Meanwhile, in the last one week Ola Electric Mobility shares have declined 12.4 per cent after its three month lock-in period expired on Tuesday, November 5, 2024.

 

This meant that approximately 18.2 crore (182 million) shares of the company, which were previously subject to a lock-in period and could not be sold, are now eligible for sale. This accounts for 4 per cent of the company’s total equity.

 

A 3-month lock-in period refers to a duration during which certain shareholders are restricted from selling or transferring their shares. 

 

When a company goes public through an IPO, some investors, including promoters and anchor investors, face these restrictions to help stabilise stock prices and prevent sharp sell-offs. While lock-in periods are commonly set at six months, they can extend up to a year, ensuring that key stakeholders support the company's long-term growth.

 

At 11:31 PM; the stock of the company recovered from its losses and was up 3.52 per cent at Rs 75.30 per share. By comparison, the BSE Sensex was up by 0.67 per cent at 80,017.83.