Amid a decline in its share price, Ola Electric’s market capitalisation fell to INR 33,597 Cr
While Nifty fell 0.78% to hit an intraday low of 23,503.05, BSE Sensex fell 0.77% to reach the day’s low of 77,542.92
Ola Electric shares recouped some of its losses and was trading at INR 76.17 apiece on NSE at 2:53 PM
Shares of Ola Electric
tumbled nearly 5% to INR 75.81 apiece on the NSE during the intraday trading today (January 9), slipping below its listing price of INR 76 apiece amid heavy selling of the stock.
More than 34 lakh Ola Electric shares were sold on the NSE today.
However, the stock recouped some of its losses and was trading at INR 76.17 apiece on NSE at 2:53 PM.
Amid a decline in its share price, Ola Electric’s market capitalisation fell to INR 33,597 Cr (almost 3.91 Mn).
The downward movement in the stock coincided with the decline in the broader market. While Nifty fell 0.78% to hit an intraday low of 23,503.05, BSE Sensex fell 0.77% to reach the day’s low of 77,542.92.
When Ola Electric listed on bourses last year, it was seen as a watershed moment given it was the first electric vehicle (EV) maker to go public in India. However, the stock has lost its sheen amid rising consumer complaints over subpar after sales service, defective vehicle sales and consequent regulatory scrutiny.
The stock ended Wednesday’s trading session 49.48% lower than its 52 week high of INR 157.40.
Recently, the Securities and Exchange Board of India (SEBI) issued an administrative warning to Ola Electric for violating its regulations. The regulator noted that the EV maker’s founder and CEO Bhavish Aggarwal published the information about the planned expansion of the store network nearly 4 hours before filing it with the exchanges.
Besides, the Karnataka High Court a couple of days ago dismissed Ola Electric’s plea to set aside a notice issued by the Central Consumer Protection Authority (CCPA). The consumer protection watchdog in October last year issued a show-cause notice to the company over allegations of delays in providing service and deliveries, improper customer services and a host of other customer complaints among others.
On the financial front, the company managed to narrow 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.
