Shares of EV maker Ola Electric surged nearly 10% to touch an intraday high of INR 34.40 on the BSE today after founder and CEO Bhavish Aggarwal completed his stake sale yesterday.
At 12:38 IST, the stock was up 9.97% at INR 34.40. The company’s market capitalisation stood at INR 15,173.25 Cr (about $1.7 Bn) at the time.
Yesterday, Aggarwal sold 2.83 Cr shares in a bulk deal at INR 31.9 apiece, amounting to INR 90.3 Cr. Overall, he sold shares worth INR 324.6 Cr over three trading sessions.
The company, after yesterday’s share sale, said that Aggarwal has “completed the one-time, limited monetisation of a small portion of his personal shareholding” to fully repay a loan amounting to INR 260 Cr and release all 3.93% shares previously pledged, thereby eliminating all promoter pledges.
It added that the promoter group’s stake in the company stands at 34.6% following the transaction, “with no dilution of promoter control or change in long-term commitment”.
Beginning December 2024, the CEO pledged his Ola Electric equity to raise loans for his AI venture Krutrim.
As the shares of the company have been on a downward spiral, the stake sale was aimed at repaying the loan in full and releasing the pledged shares. The move is expected to clear the overhang on the stock and reduce investor concerns about the risk of forced selling.
Notably, the stock has tanked nearly 60% year to date amid declining market share, regulatory troubles, customer complaints on after-sales service, and high losses. The stock is also down over 54% from its IPO issue price of INR 76.
Recently, Ola Electric got approval from its board to raise up to INR 1,500 Cr via further public offer, rights issue, QIP, private placement and/ or any other permitted modes.
The EV maker’s E2W registrations crashed 48% to 8,400 units in November from 16,049 units in October, with it dropping to the fifth position in terms of market share.
In its Q2 FY26 shareholders’ letter, Ola Electric said several OEMs were using heavy discounts and higher dealer incentives to chase market share. In contrast, the company added that it is prioritising profitability, with its auto segment turning EBITDA profitable in the September quarter.
On the financial front, Ola Electric managed to trim its consolidated net loss by more than 15% to INR 418 Cr in Q2 FY26 from INR 495 Cr in the same quarter last year. However, revenue also slumped 43% to INR 690 Cr from INR 1,214 Cr in Q2 FY25.
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