Ola Electric Crashes 6.4%, Stock Down 20% From IPO Price

SUMMARY

Ola Electric sank 6.4% to hit its all-time low at INR 60.13 apiece during the intraday trading on the BSE

This was the eighth consecutive session when the stock ended in the red

The EV maker’s shares are trading nearly 20% below the IPO issue price of INR 76 per share

Shares of Bhavish Aggarwal-led Ola Electric sank 6.4% to hit their all-time low at INR 60.13 apiece during the intraday trading on the BSE on Friday (February 14).

The stock ended the trading session 5.3% lower at INR 60.84 per share on the BSE. This was the eighth consecutive session when the stock ended in the red.

The EV maker’s shares are trading nearly 20% below the IPO issue price of INR 76 per share. The company’s shares made their public market debut in August last year, listing at INR 75.99 apiece on the BSE. On the NSE, the stock made its debut at INR 76 per share.

The company’s market capitalisation currently stands at INR 26,720.81 Cr (about $3.07 Bn).

The stock has been under pressure over profitability concerns and the ongoing correction in the Indian equities market.

Last week, the company reported a 50% increase in its consolidated net loss to INR 564 Cr in Q3 FY25 from INR 376 Cr in the year-ago quarter. Operating revenue declined 19% to INR 1,045 Cr during the quarter under review from INR 1,296 Cr in Q3 FY24.

The company attributed the weak performance in the December quarter to high competitive intensity and service challenges.

It is pertinent to mention that Ola Electric received a lot of criticism last year from its customers over its after-sales service. Following this, the Central Consumer Protection Authority (CCPA) issued a show cause notice asking Ola Electric to explain accusations of misleading advertising and unfair trade practices. The CCPA has sought additional details from the company multiple times for its ongoing investigation.

While reporting its third quarter results, the company said that it has resolved the service issues and turned the tide on market share and margins by expanding its store network.

Meanwhile, the rising competition in the electric two-wheeler industry resulted in Ola Electric falling behind legacy automotive players Bajaj Auto and TVS Motor in December 2024. However, it managed to reclaim the top spot in January, as its registrations zoomed 64% to 22,656 units from 13,794 units in the previous month.

The company is banking on its electric motorbike series Roadster X, launched earlier this month. Ola Electric began the production of the ebikes last month and the deliveries are expected to begin in mid-March 2025.

Updated at 04:59 PM