Ola Electric Promoter Bhavish Aggarwal Sells Another 4.2 Crore Shares on Open Market

Ola Electric's founder, Bhavish Aggarwal, has sold an additional 4.2 crore company shares through open market transactions. This latest sale, amounting to ₹142 crore, follows a previous sale of shares worth ₹92 crore just a day earlier. These transactions are intended to repay a loan at the promoter level.

The two sales combined represent nearly 6.8 crore shares divested in just two days. Ola Electric stated that the initial sale was a one-time event to fully repay a ₹260 crore promoter loan. While the company maintains that these sales are limited and personal, the market has reacted negatively, with Ola Electric shares hitting a new low of ₹32.67 on the NSE on December 17, before closing nearly 5% lower at ₹32.90.

Ola Electric had previously communicated that Aggarwal's stake sale would free up all previously pledged shares, representing approximately 3.93% of the equity, removing a key concern for the stock. Following these transactions, the promoter group is expected to hold about 34% of the company. Ola Electric emphasized that this remains among the highest promoter holdings for newly listed technology firms.

The company reiterated that the stake sale was executed at the promoter’s personal level and will not affect Ola Electric’s operations, governance, or long-term strategy. Aggarwal's intention is to operate with zero promoter pledge, eliminating risks related to leverage and potential volatility.

That said, the reality is a bit more complicated. these sales occur during a challenging period for Ola Electric. The company is facing slowing demand, decreasing market share, and ongoing financial losses. In October, Ola Electric fell to fifth place in the electric two-wheeler market, trailing Bajaj, TVS, Hero, and Ather. November sales dropped below 10,000 units to approximately 8,400.

Ola Electric reported a consolidated net loss of ₹418 crore for the September quarter, an improvement from the ₹495 crore loss a year prior. That said, the reality is a bit more complicated. revenue also declined sharply by 43% year-on-year to ₹756 crore, highlighting the difficulties the company faces as competition intensifies and sales volumes decrease.