Highlights
Ola Electric Stake Sale and Market Update
Ola Electric, spearheaded by its founder and CEO Bhavish Aggarwal, recently saw him divest a small fraction of his shares through a bulk transaction on the stock exchange. Based on the disclosures from the exchange, Aggarwal sold 2,62,56,748 shares, equating to approximately 2% of his current holdings, at a price of Rs 34.99 per share. This deal was valued close to Rs 92 crore.
This month, Aggarwal also pledged a further portion of his shares. Filings indicate that on December 5, he pledged a 3.04% stake, raising his total pledged shareholding to 13.3% prior to the sale.
In a formal statement, the company mentioned that following this transaction, Aggarwal executed a one-time, limited monetisation of a minor share portion to completely repay a promoter-level loan of Rs 260 crore. This action will lead to the release of all previously pledged 3.93% shares, effectively alleviating a significant overhang.
Ola Electric explained that this measure aims to eradicate all promoter pledges, which can create unnecessary risk and volatility. The founder’s belief is that Ola Electric should function without any pledge interruption and that he should entirely unwind the leverage.
Before the sale, Aggarwal possessed 1,323,960,029 shares in Ola Electric, amounting to a 30.02% ownership in the firm. After the transaction, his stake has decreased to 1,29,77,03,281 shares, or roughly 29.4%.
Market Position and Sales Performance
In the realm of electric vehicle sales, Ola has fallen to fourth place for November, with its market share dropping to 7.19%. This represents a significant decline compared to the top position held during the same month last year. Additionally, the company faced a stark 50% month-on-month decrease in November, with registrations plummeting to 8,254 units from 16,013 in October.
For the second quarter of the current fiscal year FY26, Ola Electric observed a 46% drop in revenue, amounting to Rs 660 crore, while losses expanded to Rs 418 crore.
This month, Ola Electric’s stock reached its lowest level ever, showcasing a 70% decline in value within a year. The shares were at their zenith when the company’s stock peaked at Rs 100.40 on December 17, 2024.
As of December 16, Ola Electric’s shares were trading at Rs 34.20 each, resulting in a market capitalisation of Rs 15,085 crore ($1.6 billion).