Investors in Ola Electric Mobility got a reason to cheer on December 19, as the company's shares jumped nearly 10% after its promoter and CEO Bhavish Aggarwal announced that he has completed the sale of a small portion of his personal shareholding to repay a loan and remove all promoter pledges.
The shares of the electric scooter-maker rose to Rs 34.38 apiece in the morning trading hours of Friday, snapping a three-session losing streak. This move comes after Aggarwal sold a portion of his stake to fully repay a promoter-level loan of approximately Rs 260 crore, which completely eliminates all promoter pledges.
Following the transaction, the promoter group continues to hold 34.6% in Ola Electric, with no dilution of promoter control or change in long-term commitment. This was a planned, time-bound exercise executed entirely at the promoter’s personal level and has no impact on the company’s performance, operations, or strategic direction.
Ola Electric shares had fallen more than 17% in just three sessions as founder and promoter Bhavish Aggarwal consistently sold part of his stake. As a result, the stock dropped sharply to hit an all-time low of Rs 30.76 per share on December 18. It lost more than 80% from its record high of Rs 157.4 on August 20 last year.
More than 19.42 million shares have been traded on Friday so far, which is nearly 4.8 times their 30-day moving average. On Thursday, Bhavish Aggarwal sold 0.6 percent stake in the company for Rs 90.28 crore through a bulk deal. He sold 2.83 crore shares for Rs 31.90 each, at an over 3 percent discount to the stock's closing price on Wednesday.
Bhavish Aggarwal had informed exchanges on December 16 that he had undertaken a one-time, limited monetisation of a small portion of his personal stake to fully repay a promoter level loan amounting to Rs 260 crore. This action is taken to eliminate all promoter pledges, which can introduce avoidable risk and volatility.
Remember, this is a perspective, not a prediction. Do your own research and consider your own risk tolerance before making any investment decisions. The electric vehicle market is growing rapidly, and Ola Electric is one of the key players in this space. With the removal of promoter pledges, the company may see increased investor confidence, which could positively impact its stock price. However, the market trends and industry conditions can be unpredictable, and investors should stay informed and up-to-date on the latest developments.
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