Ola Electric shares: Shares of Ola Electric Mobility fell as much as 5 per cent to an intraday low of Rs 104.10 as the one-month lock-up period for 18.18 crore worth of shares ended on Monday, September 9. In a note, brokerage firm Nuvama said the yield shares, which were locked, can now be traded. The end of the one-month lock-up period triggers fears of selling pressure in the open market.
Nuvama Institutional Equities said the lock-up period of 38 companies will expire between September 5, 2024, and November 30, 2024, releasing shares worth $21 billion into the market. But it added that not all shares eligible to be sold will make it to the market as a large portion consists of promoter and group stakes, which are not normally sold.
Ola Electric, which more than doubled its IPO The share price of Rs 76 entered a corrective phase following the post-listing surge. The stock has already fallen 30 per cent from its all-time high of Rs 157.53. Competition from TVS Motor, Bajaj Auto, Ather Energy and Hero MotoCorp overshadowed the company’s performance in recent times. For instance, Ola Electric’s market share in August fell to 32 per cent and TVS Motor and Bajaj Auto grabbed 19 per cent of the market share each to reflect the change in market dynamics.
Analysts still expect Ola Electric to show a bright future in the long term despite all the headwinds. Recently, HSBC initiated coverage on Ola Electric with a target price of Rs 140, citing that the company is well-positioned to have good prospects in India’s fast-growing EV market. Though HSBC takes a conservative view on the pace of EV penetration in the country, strong policy support from the government, cost efficiency and a promising battery business make Ola a good investment with an attractive risk-reward profile, it said.
At 11:13 am, Ola Electric shares were trading 3.51 per cent lower at Rs 105.80, underperforming the Sensex, which saw a recovery of nearly 1 per cent from the day’s lowest level.
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