Why Did Ola Electric Shares Drop 3% As Bhavish Aggarwal Divests Rs 142 Crore Stake?
Click to start listening
Synopsis
Ola Electric shares drop 3% as founder Bhavish Aggarwal sells a portion of his stake worth Rs 142 crore. This sale was aimed at repaying a promoter-level loan. Despite the decline, Ola Electric assures no dilution in control or impact on business operations.
Key Takeaways
- Ola Electric shares declined by 3% following a stake sale by Bhavish Aggarwal.
- The sale was aimed at repaying a promoter-level loan of Rs 260 crore.
- All promoter-level share pledges have been released, making the founder-debt free.
- Despite the decline, Ola Electric assures no impact on business operations.
- The stock is trading near its 52-week low.
Mumbai, Dec 18 (NationPress) The shares of Ola Electric Mobility Limited experienced a further decline on Thursday as founder and promoter Bhavish Aggarwal offloaded a significant portion of his personal shareholding via open market transactions.
The stock saw a drop of nearly 3 percent, trading at approximately Rs 32.22 each during early trading hours, and reaching an intra-day low of Rs 31.56, positioning it near its 52-week low. This decrease occurred despite a generally stable broader market, with the NSE Nifty index rising around 0.29 percent.
According to bulk deal data from the National Stock Exchange, Aggarwal divested around 4.19 crore equity shares at an average price of Rs 33.96 per share on Wednesday.
The total transaction value was close to Rs 142 crore, though the identities of the buyers remain undisclosed based on the exchange data.
Ola Electric clarified that this share sale was part of a one-time, limited monetization of a small fraction of the founder's personal stake, primarily aimed at fully repaying a promoter-level loan of Rs 260 crore.
The company stated that the release of the pledge included a combination of share monetization and other personal income sources of the founder. Consequently, all promoter-level share pledges, totaling about 3.93 percent, have now been entirely released, rendering the founder-promoter debt-free.
This news comes shortly after Ola Electric shares faced pressure from an earlier bulk deal executed by Aggarwal, as reported by IANS. The stock has been under consistent selling pressure over the past weeks, correcting sharply in the last three months, keeping it near its annual low.
Despite these recent transactions, the company has assured that there is no dilution of promoter control, nor does it affect its business operations or long-term strategy. Ola Electric has reiterated that this transaction was entirely at the promoter's personal level and does not impact the company’s financial stability.
At approximately 9:46 a.m. on Thursday, the stock was trading around Rs 31.88, still significantly down for the day, as investors exercised caution amid ongoing selling trends.
Point of View
While concerning for investors, reflects a strategic move by Bhavish Aggarwal to clear personal debts without compromising the company's integrity. Ola Electric's assurance that business operations remain unaffected is crucial in maintaining investor confidence amidst market volatility.
NationPress
20/12/2025
Frequently Asked Questions
Why did Bhavish Aggarwal sell his shares?
Bhavish Aggarwal sold his shares to fully repay a promoter-level loan of Rs 260 crore, part of a one-time, limited monetization strategy.
What impact does this sale have on Ola Electric's operations?
Ola Electric has confirmed that the share sale does not affect its business operations or long-term strategy, ensuring no dilution of promoter control.
How much did Ola Electric shares fall after the sale?
The shares fell nearly 3% during early trading, reaching around Rs 32.22 each.
Was there any identification of the buyers in the share sale?
No, the identities of the buyers of the shares sold by Aggarwal remain undisclosed based on exchange data.
What was the total value of the shares sold?
The total value of the shares sold was approximately Rs 142 crore.
