Ola Electric Founder Sells 2.6 Crore Shares in Major Transaction

Ola Electric Mobility's founder and Chief Executive Officer, Bhavish Aggarwal, has executed a significant sale of his stake in the company, offloading over 2.6 crore shares in a bulk deal valued at approximately ₹92 crore. The shares were sold at a price of ₹34.99 each, as per disclosures made to the stock exchange on Tuesday.

Prior to the sale, Aggarwal held a substantial 30.02% stake in the electric two-wheeler manufacturer, translating to over 132 crore shares. Following this transaction, his shareholding has decreased to roughly 29.4%, equating to about 129.8 crore shares.

The news comes as Ola Electric's shares experienced a downturn, closing at ₹34.20 on the National Stock Exchange (NSE), marking an 8.5% decline for the day. This slump follows a recent 52-week low of ₹33.20 recorded on December 9, highlighting a stark contrast to the initial public offering (IPO) price of ₹76, representing a 55% decrease from that level.

The company's stock, once celebrated as a leading player in India's electric vehicle (EV) market, has seen a dramatic fall, with its value eroding by 70% over the past year. In December 2024, Ola Electric shares peaked at ₹102.50, but have since faced a steady decline amid increasing competition and market challenges.

Ola Electric's IPO, valued at ₹6,146 crore, was met with a tepid market response, debuting flat on the Bombay Stock Exchange (BSE) and the NSE. The issue, however, was oversubscribed 4.45 times, with the retail segment being booked more than four times.

Currently, the stock trades below its 50-day and 200-day simple moving averages, which stand at ₹45.5 and ₹48.9 respectively, indicating a challenging market environment. Data from Trendlyne indicates that the company’s share price has exhibited significant volatility, with a one-year beta of 1.5.

Ola Electric is also grappling with declining market share, having slipped to fifth place in the Indian two-wheeler EV market as of October. The company now trails behind competitors such as Bajaj, TVS, Hero, and Ather Energy, with sales plummeting to around 8,400 units in November—down from over 10,000 units.

The financial performance of Ola Electric has been under pressure, with the firm reporting consecutive quarterly losses. For the quarter ending in September, the company's net loss narrowed to ₹418 crore from ₹495 crore a year prior, while revenue fell sharply by 43% year-on-year, totalling ₹756 crore.

In a statement following the transaction, the company noted that Aggarwal's decision to monetise a portion of his holdings was aimed at repaying a promoter-level loan of ₹260 crore and eliminating all previously pledged shares. This move is part of a broader strategy to mitigate risk and volatility associated with pledged shares, reinforcing Aggarwal's commitment to a zero-pledge operational model.

The current market landscape for Ola Electric reflects a significant shift from its previous status as a frontrunner in the EV sector, raising questions about its future direction and competitiveness in a rapidly evolving industry.