MUMBAI– Shares of Ola Electric Mobility have crashed nearly 80 percent from their post-listing peak, extending a steep decline as the stock fell for the seventh consecutive trading session on Monday. Persistent selling, weak guidance, and technical breakdowns have pushed the stock far below its IPO price, heightening investor concerns.
Ola Electric’s shares have now fallen more than 50 percent from their IPO price of Rs 76. The stock closed at Rs 34.41, down Rs 1.09 or 3.07 percent. During intra-day trade, the stock slid as much as 4 percent, continuing its multi-session losing streak. Over the past 25 sessions, the stock has managed to post gains on only five occasions.
The company’s market capitalization has dropped to under Rs 15,000 crore — a dramatic fall from the more than Rs 65,000 crore valuation it briefly commanded after listing.
Trading activity surged on Monday, with more than 6 crore shares changing hands during intra-day trading, significantly higher than the stock’s 20-day average volume of 1.6 crore shares.
Analysts said the stock has been under pressure since early November, when it fell below key moving averages and has remained below them ever since. Market share has also been a concern: according to VAHAN data, Ola Electric held 6.7 percent market share at the start of December.
The company recently announced that it has begun mass deliveries of vehicles powered by its 4680 Bharat Cell, which promises improved performance, range, and safety. However, the financial outlook has weighed heavily on sentiment.
At the end of the second quarter, Ola Electric sharply lowered its full-year revenue guidance to between Rs 3,000 crore and Rs 3,200 crore, down from its earlier estimate of Rs 4,200 crore to Rs 4,700 crore. (Source: IANS)
