Shares of Ola Electric Mobility Ltd. will be in focus on Monday as its one-month share lock-in period ends. Monday will mark exactly one month to Ola Electric’s listing on the bourses. The company had made its stock market debut on August 9.
Read More: Bajaj Housing Finance IPO Opens Tomorrow; GMP Signals 73% Upside
After its shareholder lock-in for one-month ends on Monday, as many as 18.18 crore shares of the company, or 4% of its outstanding equity will become eligible for trading, according to Nuvama Alternative and Quantitative Research’s note.
It must be specified that the shareholder lock-in period ending does not mean that all the shares will be sold in the market. They will only become eligible to trade.
Read More: Tolins Tyres IPO opens on Monday. What GMP signals ahead of subscription?
Shares of Ola Electric, after doubling from its IPO price of ₹76 are in corrective mode. The stock has already declined 30% from its all-time high of ₹157.4.
Addressing the issue of losing market share in the month gone by, Ola Electric Chairman & Managing Director Bhavish Aggarwal said on Friday the company’s market share will increase as it increases its distribution and penetration.
Ola has lost market share to peers like TVS Motor, Bajaj Auto, Aether Energy and Hero MotoCorp.
Read More: Rs 35000 dividend: Highest-ever? Tata Group company doubles FY24 payout to shareholders – Here’s why
TVS and Bajaj Auto holding a 19% market share each. Ola Electric sales are set to face more challenge in the coming weeks with TVS, Bajaj, Ather and Hero MotoCorp all set to ramp up sales and productions.
According to a report by Jefferies, Ola Electric has seen a drop in market share due to increasing competition from incumbent players.
Despite the uncertainties, HSBC sees a positive risk-reward for Ola Electric as it expects EV manufacturing costs to fall significantly by financial year 2027 – 2028, while that of Internal Combustion Engine (ICE) scooters may go up due to emission standards.
Shares of Ola Electric had ended 4.3% lower on Friday at ₹110.25.
