Ola Electric Share: The sharp decline in the shares of Ola Electric in the last one year has deepened the concerns of investors. On Thursday, the company’s stock fell by about 4 percent to its lowest level in 52 weeks, taking its total loss to about 70 percent on an annual basis. Amidst this weak performance, the biggest stir was created when the company’s promoter and founder Bhavesh Aggarwal sold a part of his stake in the open market.
According to the report, he has sold shares worth more than Rs 200 crore in the last two days. At a time when the company is already under pressure, the news of stake reduction by the promoter has given a further blow to the confidence in the market and investors are seeing it as a negative sign about the future of the company.
Poor performance of Ola Electric stocks
However, the company has clarified that Bhavesh Aggarwal has sold this stake to repay the loan of about Rs 260 crore taken by him and it will not have any impact on the business or long-term strategy of Ola Electric. The company has also clarified that even after the stake sale, Bhavesh Aggarwal will continue to hold approximately 34 percent stake.
Despite this, questions are being raised in the market that when the company is continuously running in losses, the expected growth is not being seen in the electric two-wheeler segment and the competition is continuously increasing, selling the promoter’s shares at such a time weakens the confidence of the investors.
The company said – it will not make any difference
The reality is that the performance of Ola Electric shares has been consistently disappointing. The stock has fallen by about 25 percent in the last one month, by about 50 percent in three months and by about 70 percent in a year. Challenges like slowing demand in the electric vehicle market, rising costs, persistent losses and no clear timeline for profits have put the company under pressure.
In such a situation, investors now want clarity on the company’s future strategy, funding needs and plans to reach profits. Overall, the promoter’s stake sale may be cited as a reason to repay personal debt, but amid weak stock performance, this move seems to be increasing uncertainty and apprehensions in the market.
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