Ola Electric Faces Investor Concerns as Shares Plummet

Ola Electric, a prominent player in the electric vehicle sector in India, is facing increasing scrutiny from investors as its stock price has plummeted following a series of substantial share sales by its founder and promoter, Bhavish Aggarwal. Investors have seen a significant erosion of wealth, with the company’s market valuation down by approximately ₹55,525 crore (around £5.5 billion) over a span of 16 months.

Recent Share Sales

On December 17, 2025, Bhavish Aggarwal sold 4.2 crore shares through open market transactions, which amounted to around ₹142 crore (approximately £14.2 million). This sale followed a previous transaction where he offloaded more than 2.6 crore shares at ₹34.99 each, valued at roughly ₹92 crore (about £9.2 million). In total, nearly 6.8 crore shares have been sold in just two days.

The company clarified that these sales were to facilitate the repayment of a ₹260 crore (approximately £26 million) loan at the promoter level. Despite Ola Electric stating that this was a one-time, limited monetisation of a small portion of Aggarwal's personal stake, the market reacted negatively, leading to a drop in share prices. On the same day, Ola Electric shares hit an all-time low of ₹32.67 on the National Stock Exchange (NSE) before closing at ₹32.90, nearly 5% lower.

Impact on Investor Sentiment

The recent sell-off has sparked concerns among investors regarding the stability of Ola Electric. The company stated that after these transactions, the promoter group is expected to retain approximately 34% ownership, which remains one of the highest levels of promoter holdings among newly listed technology firms. The firm reassured stakeholders that the stake sale would not lead to any dilution of control or changes in operations, governance, or long-term strategies.

Ola Electric aims to eliminate leverage-related risks by operating with zero promoter pledge, a move intended to enhance investor confidence during a challenging period for the company.

Market Challenges

Ola Electric has been grappling with declining demand, reduced market share, and ongoing financial losses. Recent data indicates that as of October, the company ranked fifth in the electric two-wheeler market in India, trailing competitors such as Bajaj, TVS, Hero, and Ather. Monthly sales in November fell below 10,000 units, with figures dropping to around 8,400 units.

Financially, Ola Electric reported a consolidated net loss of ₹418 crore for the September quarter, a slight improvement from a ₹495 crore loss during the same period last year. However, revenue has sharply declined by 43% year-on-year to ₹756 crore, indicating the increasing pressures the company faces in a competitive market.

In summary, Ola Electric's recent share transactions by its founder have raised alarms among investors, compounding existing concerns about the company's financial health and market position. As the electric vehicle sector becomes increasingly competitive, Ola Electric's ability to navigate these challenges will be closely monitored by stakeholders and market analysts alike.