Ola Electric Stock Drops as CEO Bhavish Aggarwal Sells 2.6 Crore Shares to Clear Rs 260 Crore Loan

Bhavish Aggarwal has sold a significant portion of his shares through a bulk deal earlier this week.

Mumbai:

Ola Electric Mobility Limited shares were trading near their 52-week low on Wednesday following founder and promoter Bhavish Aggarwal's decision to sell a substantial number of his shares through a bulk deal earlier this week.

This sale has intensified pressure on the stock, which has already been experiencing selling pressure over recent weeks.

In early trading hours, Ola Electric shares were observed trading at approximately Rs 34.17, showing a decline of nearly 1 percent.

The stock has experienced a decline of more than 19 percent over the past month and has corrected approximately 41 percent during the last three months.

According to official data, the stock is currently hovering close to its 52-week low of Rs 33.

An exchange filing revealed that Bhavish Aggarwal sold approximately 2.6 crore shares as part of a one-time monetization of a small portion of his personal holdings in the company.

The primary objective of this transaction was to completely repay a promoter-level loan amounting to Rs 260 crore.

The company clarified that following this sale, all previously pledged shares, totaling about 3.93 percent, will be fully released.

"Ola Electric founder-promoter has undertaken a one-time, limited monetization of a small portion of his personal stake to fully repay a promoter level loan amounting to Rs 260 crore," stated the company in its exchange filing.

"With this, all of the previously pledged 3.93 percent shares will be released, removing a critical overhang," the statement added.

This move eliminates a key concern that had been negatively influencing investor sentiment regarding the stock.

Despite this sale, the promoter group will maintain ownership of approximately 34 percent stake in Ola Electric, which remains one of the highest promoter holdings among newly listed companies.

The company emphasized that there is no dilution of promoter control, no alterations to corporate governance, and no impact on its long-term strategy.

It was noted that the transaction was conducted entirely at the promoter's personal level and does not affect the company's operations.