Why Did Ola Electric’s Shares Plummet After SoftBank Reduced Its Stake?
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Synopsis
Ola Electric's shares have taken a significant hit following SoftBank's decision to reduce its stake. This has left investors rattled, especially after a recent surge in stock prices. What does this mean for the future of Ola Electric?
Key Takeaways
- Ola Electric's share price fell nearly 8% after SoftBank's share reduction.
- SoftBank sold 94.9 million shares, reducing its stake to 15.68%.
- The stock had previously rallied 80% before this decline.
- Ola Electric's unit sales decreased by 31% year-over-year.
- SoftBank remains a key institutional investor in the company.
New Delhi, Sep 5 (NationPress) The shares of Ola Electric Mobility experienced a sharp decline of nearly 8 percent during Thursday's trading session, following the decision by the renowned Japanese investment firm SoftBank to decrease its stake in the electric scooter manufacturer through open market transactions.
A regulatory filing disclosed that SoftBank's investment division, SVF II Ostrich (DE) LLC, divested approximately 94.9 million shares of Ola Electric between July 15 and September 2.
This divestiture represented over 2 percent of the company’s equity, necessitating a mandatory disclosure in accordance with SEBI regulations.
Prior to this transaction, SoftBank possessed a 17.83 percent stake in Ola Electric, amounting to 786.6 million shares. Following the sale, its ownership has been reduced to 15.68 percent, or around 691.6 million shares.
Despite this reduction, SoftBank remains one of the most significant institutional investors in the company.
The Japanese investor has played a pivotal role as an early supporter of Ola Electric, participating in various funding rounds leading up to the company's stock market launch.
The announcement of SoftBank’s share sale unsettled investors, causing Ola Electric’s stock price to tumble to Rs 59.32 per share.
This decline exceeded 8 percent, extending its two-day decrease to over 14 percent.
As of approximately 1:30 p.m., shares of the electric two-wheeler manufacturer were priced at Rs 60, down by Rs 4.50 or 6.98 percent during the trading session.
This downturn follows a substantial rally of nearly 80 percent over the past three weeks, fueled by positive market sentiment.
Ola Electric made its trading debut on the exchanges in August 2024 at its IPO price of Rs 76. Initially, the stock surged, reaching a 52-week high of Rs 123.9 in September 2024.
However, it subsequently plummeted by 68 percent to a low of Rs 39.6 in July of this year. Since then, the stock had been gradually recovering, approaching its IPO price before this week's drop.
On the operational side, Ola Electric recorded sales of 18,972 units in August 2025, as reported by the government's VAHAN portal. Nevertheless, this figure reflects a 31 percent decrease compared to sales in the same month last year.
Point of View
It is crucial to recognize the implications of SoftBank's stake reduction in Ola Electric. Such moves can cause immediate market reactions, reflecting broader investor sentiment in the electric vehicle sector. While SoftBank remains a significant shareholder, the volatility of Ola Electric's stock raises questions about the future stability of this emerging market.
NationPress
05/09/2025
Frequently Asked Questions
What caused Ola Electric's share price drop?
Ola Electric's share price fell nearly 8% after SoftBank reduced its stake in the company, triggering concerns among investors.
What percentage of shares did SoftBank sell?
SoftBank sold approximately 94.9 million shares, amounting to over 2% of Ola Electric's equity.
How much does SoftBank own in Ola Electric now?
Post-sale, SoftBank's ownership in Ola Electric has reduced to 15.68%, equating to around 691.6 million shares.
What was Ola Electric's stock price before the decline?
Before the decline, the stock had rallied significantly, even hitting a 52-week high of Rs 123.9.
How many units did Ola Electric sell in August 2025?
In August 2025, Ola Electric sold 18,972 units, which was a 31% decrease compared to the same month last year.
