Once the one-month shareholder lockup ends on Monday, up to 18.18 million shares of the company, or 4% of its outstanding capital, will be eligible for trading, according to the note from Nuvama Alternative and Quantitative Research.
It is important to clarify that the end of the shareholder lock-up period does not imply that all shares will be sold on the market, but that they will only be tradable.
Shares of Ola Electric, after doubling from its IPO price of ₹76, are in a corrective mode. The stock has already fallen 30% from its all-time high of ₹157.4. Commenting on the issue of losing market share in the last one month, Ola Electric Chairman and Managing Director Bhavish Aggarwal on Friday said that the company’s market share will increase as its distribution and penetration increases.
Ola has lost market share to peers such as TVS Motor, Bajaj Auto, Aether Energy and Hero MotoCorp.
Ola Electric’s market share fell to 32% in August TVS and Bajaj Auto each have a market share of 19%. Ola Electric sales will face further challenges in the coming weeks as TVS, Bajaj, Ather and Hero MotoCorp are all set to ramp up sales and production.
According to a report by Jefferies, Ola Electric has seen a decline in its market share due to increasing competition from traditional players.
Despite the uncertainties, HSBC sees a positive risk-reward ratio for Ola Electric as it expects manufacturing costs of EVs to fall significantly by FY2027-2028, while those of internal combustion engine (ICE) scooters may rise due to emissions standards.
Shares of Ola Electric closed 4.3% lower at ₹110.25 on Friday.
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