New Delhi: Shares of Ola Electric Mobility plunged over 4% to an intra-day low of Rs 105.15 on Monday, coinciding with the conclusion of the company’s one-month shareholder lock-in period.
This day marks one month since Ola Electric’s introduction to the stock exchanges. Ola Electric’s shares, which had surged from their initial public offering (IPO) price of Rs 76, are now undergoing a correction. The stock has retreated by 30% from its peak of Rs 157.4.
With the lock-in period’s end, around 18.18 crore shares, or 4% of the company’s total outstanding equity, are now available for trading, as per a report by Nuvama Alternative and Quantitative Research.
It should be noted that the termination of the lock-in period does not imply that all these shares will be immediately sold; rather, they are now simply available for trading.
The company has ceded market share to rivals such as TVS Motor, Bajaj Auto, Ather Energy, and Hero MotoCorp. In August, Ola Electric’s market share fell to 32%, with TVS and Bajaj Auto capturing 19% each.