Highlights
Ola Electric’s co-founder Bhavish Aggarwal has sold shares for the third consecutive trading session, divesting 2.83 crore equity shares at an average price of Rs 31.9 each, which totals Rs 90.28 crore, as stated in exchange filings. This transaction coincides with Ola Electric’s stock reaching a new 52-week low, raising worries among investors about the ongoing promoter selling activity.
Increasing Stake Sales
With this latest sale, Aggarwal has now disposed of over 9.6 crore shares over three gatherings, bringing the total value of his stake sales this week to close to Rs 325 crore. Previously, he had sold shares worth Rs 92 crore on December 16, followed by a more substantial divestiture of Rs 142 crore on December 17.
Clarification from Ola Electric
Ola Electric has made it clear that these stake sales are part of a singular monetisation strategy intended to repay a Rs 260-crore loan owed by promoters and to fully retract pledged shares. The company assures that this does not indicate any diminishment of promoter control or a lack of long-term commitment to its operations.
Financial Context
The firm disclosed that the proceeds from earlier sales are directed towards improving the promoter’s financial standing and eliminating the pledge overhang. Nevertheless, the ongoing sale of shares, particularly during a period when the stock is trading at historical lows, has kept pressure on the stock price.
Market Performance and Challenges
Ola Electric’s shares have significantly decreased from their initial listing levels, influenced by promoter stake sales, negative market sentiment, and persistent uncertainties surrounding electric vehicle demand, competition, and operational challenges within the two-wheeler sector. In November, Ola fell to the fourth position in 2W EV sales, with a diminishing market share of 7.19%. The company experienced a sharp 50% decline in month-on-month sales for November, with vehicle registrations plummeting to 8,254 units from 16,013 in October. For the second quarter of the current fiscal year FY26, Ola Electric reported a 46% decrease in revenue to Rs 660 crore, while losses expanded to Rs 418 crore.
