Ola Electric Shares Crack 5% To Hit All-Time Low At INR 64.68

Ola Electric Shares Crack 5% To Hit All-Time Low At INR 64.68

SUMMARY

Shares of Ola Electric slumped more than 5% in early trading to hit an all-time low of INR 64.68 apiece on the BSE

Founder Bhavish Aggarwal shared images of the company’s Arrow Head sports electric bike on X before sharing them with stock exchanges

Earlier this month, SEBI sent an administrative warning to the electric mobility company for flouting disclosure regulations

Shares of Ola Electric slumped more than 5% in early trading to hit an all-time low of INR 64.68 apiece on the BSE on Tuesday (January 28), extending their losses for the sixth consecutive session.

However, the stock recovered slightly to end Tuesday’s trading session 4.26% lower at INR 65.22 on the BSE.

Earlier today, Ola Electric founder, chairman and managing director Bhavish Aggarwal shared images of the company’s Arrow Head sports electric bike on X.

Following this, the company said in an exchange filing that its founder and CMD shared the pictures on X. While the images of Ola Arrow Head were posted by Aggarwal on X at 1:19 PM, the filing on the exchanges came at around 1:46 PM.

It is pertinent to mention that earlier this month, markets regulator SEBI sent an administrative warning to the electric mobility company for flouting disclosure regulations by announcing material information about its planned store network expansion on social media before informing the exchanges first.

Aggarwal announced on X last month that the company would open 3,200 new stores, expanding its existing network of showrooms and service centres to 4,000.

SEBI, in its warning letter, said that the listed EV maker “failed to take into consideration the interest” of all its stakeholders. 

The electric two-wheeler maker is also facing increasing pressure from the Central Consumer Protection Authority (CCPA). Recently, the watchdog shot off a third letter to the listed EV company seeking more information in connection with an investigation into the company.

Ola Electric is being probed by the consumer protection body over allegations of delays in providing service and deliveries, defective vehicle sales, and other customer complaints.

With the company mired in controversies, its shares have taken a hit. The stock has tanked nearly 20% in the last month and is down 10% from its listing price of INR 75.99.

Ola Electric trimmed its consolidated net loss by 5.5% to INR 495 Cr in the September quarter of the financial year 2024-25 (Q2 FY25) from INR 524 Cr in the year-ago quarter.

However, its loss widened almost 43% from INR 347 Cr posted in the preceding June quarter amid a decline in EV sales.

Operating revenue zoomed almost 39% to INR 1,214 Cr during the quarter under review from INR 873 Cr posted in Q2 FY24. However, it slumped 26.1% from INR 1,644 Cr in Q1 FY25.