Shares of Ola Electric Mobility Ltd. witnessed a sharp decline on Thursday, extending a losing streak that has rattled investor confidence. The stock tumbled nearly 4% to hit a fresh 52-week low, pressured by consecutive sales of promoter-held shares worth a substantial sum.
Promoter Stake Sales Trigger Market Jitters
The primary catalyst for the sell-off was a series of open-market transactions by the company's founder and promoter, Bhavish Aggarwal. On Wednesday, Aggarwal offloaded shares worth approximately Rs 142 crore. This followed a separate transaction just a day prior, where shares valued at nearly Rs 92 crore were sold.
In total, over two days, promoter stake sales amounted to more than Rs 230 crore, involving close to 6.8 crore shares. The rapid succession of these large-scale sales spooked the market, triggering a fresh wave of selling pressure from other investors.
Stock Performance and Company Clarification
On the National Stock Exchange (NSE), Ola Electric's stock fell as much as 4.29% to around Rs 31.42, marking its weakest level since its market debut. This decline adds to a painful trend for shareholders.
Despite the company issuing a clarification, investor sentiment remained fragile. Ola Electric stated that the transactions represented a "one-time, limited monetisation of a small portion of the promoter’s personal holding" to fully repay a promoter-level loan of Rs 260 crore.
The company emphasized that this move would lead to the release of all previously pledged 3.93% of shares, "removing a critical overhang." It also noted that post-transaction, the promoter group would hold about 34% stake, which it claims is among the highest for new-age listed companies, asserting no dilution of long-term conviction.
Broader Decline and Investor Caution
The reassurance, however, did little to stem the downward slide. The stock had already dropped nearly 5% in the previous trading session. Over a broader horizon, the picture appears even more stark.
Ola Electric shares have fallen approximately 12% in the past five trading days. Zooming out further, the stock is down more than 24% over the last month. Most significantly, it is now trading nearly 59% below its IPO price of Rs 76, a sobering statistic for those who invested during the initial public offering.
The sharp and sustained fall underscores the continued caution among investors. The market is still absorbing the impact of the rapid promoter sell-down, weighing it against the company's future growth prospects in the competitive electric vehicle sector.
