Ola Electric Shares Rise 2% After 26% Fall, Recovery Extends for Second Session

Business News:
Shares of Ola Electric Mobility climbed over 2 percent on December 22, touching the day’s high and extending gains for the second consecutive session. The rebound comes after the stock had plunged nearly 26 percent in less than a month.

Earlier on Friday, the stock had surged as much as 10 percent. Despite the recent recovery, analysts continue to urge investors to remain cautious, citing multiple underlying concerns.

Bhavish Aggarwal Sells Stake to Repay ₹260 Crore Loan

On December 18, Ola Electric Mobility announced that its promoter and CEO, Bhavish Aggarwal, sold a small portion of his personal shareholding to fully repay a promoter-level loan of around ₹260 crore. This move led to the release of all pledged shares, amounting to 3.93 percent of equity that had been earlier pledged against the loan.

The company clarified that following the transaction, the promoter group continues to hold a 34.6 percent stake in Ola Electric. It added that there has been no dilution of promoter control or any change in long-term commitment. The transaction was described as a planned, time-bound process carried out entirely at the promoter’s personal level, with no impact on the company’s performance, operations, or strategic direction.

What Lies Ahead?

Kalap Jain, Research Analyst at INVasset PMS, said the move by Aggarwal has removed a major overhang related to pledged shares, which had been cited as a source of volatility in recent weeks, even as overall trading levels remained under pressure.

“Prior to this development, the stock was under intense selling pressure, trading well below its IPO issue price and hitting fresh 52-week lows amid broader concerns. The recent recovery suggests that the market is viewing the removal of pledge-related uncertainty positively,” Jain said.

However, he added that it remains unclear whether the recovery marks a sustainable turnaround. Factors such as overall demand dynamics, competitive pressures in the electric two-wheeler segment, and operational execution are likely to influence price movement in the near term.

Market Share Slips, Competition Intensifies

Khushi Mistry, Research Analyst at Bonanza, noted that Ola Electric’s market share slipped to fifth position as of November 25, after being overtaken by Hero MotoCorp’s Vida brand. She highlighted that increased regulatory scrutiny, operational challenges, and intensifying competition have reduced Ola Electric’s market share to around 7 percent, down from over 25 percent during the same period last year.

She also pointed out that the GST Council’s recent decision to cut GST on ICE two-wheelers from 28 percent to 18 percent—while keeping EV GST unchanged at 5 percent—has narrowed the price gap. This has made ICE scooters more affordable and could potentially dampen near-term demand for electric two-wheelers.

Ola Electric Share Price Performance

After rising over 2 percent earlier in the day, Ola Electric shares pared most of their gains to close nearly flat at ₹34.39 per share.

The stock had dropped more than 17 percent in just three sessions amid continuous stake sales by founder Bhavish Aggarwal. It hit an all-time low of ₹30.76 per share on December 18. From its record high of ₹157.4 on August 20 last year, the stock has declined by over 80 percent.

Over the past five days, Ola Electric shares have fallen nearly 7 percent, while the stock is down around 16 percent over the last one month.