Shares of Ola Electric Mobility dropped over 7% on Tuesday, November 5, to a 52-week low of ₹73.70 on the Bombay Stock Exchange (BSE). The decline follows the expiration of a three-month lock-in period, enabling an additional 18.2 crore shares, or 4% of the company’s outstanding equity, to become eligible for trading. According to Nuvama Alternative & Quantitative Research, this milestone doesn’t necessarily mean all eligible shares will be sold, but they are now permitted to be traded.
This recent expiration comes after a similar lock-in ended in September, when another 18.2 crore shares were released. During the last month, Ola Electric’s stock value has declined by over 21.5%, including a 4.14% drop in the last two weeks alone.
Adding to the week’s financial disclosures, Ola Electric is set to release its September quarter results on November 8. In the previous June quarter, the company reported a widening net loss of ₹347 crore, with EBITDA losses at ₹205 crore, only a slight improvement from last year’s ₹218 crore loss.
Despite financial challenges, Ola Electric’s sales figures show encouraging trends. In October, the company sold 32,836 scooters, expanding its market share to 34%, up from 28% in September. The company also recently ran a limited-time, 72-hour discount promotion, offering up to ₹25,000 off the S1 model and benefits valued at ₹30,000 on other models.
By mid Tuesday, Ola Electric’s shares were trading around ₹75, falling slightly below the IPO price of ₹76 and touching an intraday low of ₹74.81. Investors and market watchers are keeping a close eye on the upcoming financial report, anticipating insights into Ola’s strategy to navigate both market challenges and expanding opportunities in the electric mobility sector.
