Why Ola Electric Shares Fell 4% to a 52-Week Low Today

Ola Electric shares came under sharp selling pressure on Thursday, slipping nearly 4% to hit a fresh 52-week low, as large promoter stake sales over the past two days unsettled investor sentiment.

The stock touched an intraday low of Rs 31.54 on December 18, marking its weakest level since listing. The decline followed consecutive open-market transactions by founder and promoter Bhavish Aggarwal, who offloaded a significant portion of his personal shareholding.

What Triggered the Fall?

On Wednesday, Aggarwal sold 4.2 crore shares of Ola Electric through open market deals, valued at approximately Rs 142 crore. This came just a day after he sold over 2.6 crore shares at Rs 34.99 apiece, worth close to Rs 92 crore.

In total, nearly 6.8 crore shares were sold within two days, amounting to transactions worth over Rs 230 crore. The scale and speed of the sell-off raised concerns among investors, leading to heightened selling pressure on the stock.

Company’s Clarification

Following the initial transaction, Ola Electric clarified that the promoter’s stake sale was a one-time and limited monetisation of a small portion of Aggarwal’s personal holding. The company said the proceeds were being used to fully repay a promoter-level loan of Rs 260 crore.

Ola Electric emphasised that the transactions were personal in nature and had no bearing on the company’s business operations, fundamentals or long-term outlook.

Why Sentiment Remains Weak

Despite the clarification, market sentiment remained cautious. Ola Electric shares had already declined nearly 5% in the previous session and continued to slide on Thursday, extending losses.

The company also stated that the stake sale would result in the release of all pledged promoter shares, which previously accounted for about 3.93% of total equity. While this removes a key overhang on the stock, investors appear wary of large promoter exits, particularly when they occur in quick succession.

Promoter Holding Still Strong

Post the latest transactions, the promoter group is expected to retain a stake of around 34% in Ola Electric, which the company says remains among the highest promoter holdings in recently listed technology firms.

However, the sharp price reaction highlights continued market sensitivity to promoter stake sales. For now, Ola Electric shares remain under pressure as investors assess the implications of the recent sell-off.