Ola Electric's founder and promoter, Bhavish Aggarwal, has sold another 4.2 crore shares of the company through open market transactions, sparking concerns among investors and pushing the stock to fresh lows.
The latest transaction, executed on Wednesday, involved shares worth Rs 142 crore. This comes a day after Aggarwal sold more than 2.6 crore shares in a bulk deal at Rs 34.99 apiece, a transaction valued at around Rs 92 crore. Taken together, the two sales amount to nearly 6.8 crore shares being offloaded within a span of two days.
According to the company, the sales are limited and personal in nature, and are intended to fully repay a promoter level loan amounting to Rs 260 crore. The company has emphasized that the stake sale was carried out entirely at the promoter’s personal level and would not result in any dilution of control or changes to Ola Electric’s operations, governance or long-term strategy.
After Tuesday's sale, Ola Electric shares hit an all-time low of Rs 32.67 on the NSE before closing nearly 5% lower at Rs 32.90. The company's financial performance has also remained under pressure, with a consolidated net loss of Rs 418 crore for the September quarter, and revenue declining sharply by 43% year-on-year to Rs 756 crore.
Ola Electric has been grappling with slowing demand, falling market share, and sustained financial losses. The company slipped to fifth place in the electric two-wheeler market in October, behind Bajaj, TVS, Hero, and rival Ather. In November, monthly sales fell below 10,000 units to around 8,400.
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