Today, Ola Electric shares ended down 8.5% at Rs 34.20 on the NSE. On December 9, the scrip hit a 52-week low of Rs 33.20.With today’s decline, the gap between the current market price and the IPO issue price of Rs 76 has widened to 55%.
In December last year, it hit a high of Rs 102.50 and has gone downhill since then.
Also read: EV poster Ola’s 64% crash is worst among peers: Shares are now half of IPO price. Is the sale over yet?
The Rs 6,146 crore IPO witnessed a lackluster debut, with a flat listing on the BSE and NSE. The issue was oversubscribed 4.45 times and the retail quota was booked more than 4 times. The stock is currently trading below its 50-day and 200-day simple moving averages (SMAs) of Rs 45.5 and Rs 48.9. The decline takes place in a context of significant volatility, with a beta of 1.5 over one year, according to Trendlyne data.
Once the poster child for the electric vehicle boom in India, Ola is now facing mounting challenges, marked by shrinking market share and continued profit pressure.
The company slipped to fifth place in October, behind Bajaj, TVS, Hero and key rival Ather. In November, sales fell below 10,000 units, dropping to around 8,400.
Financial performance remains under pressure, with the company reporting consecutive quarterly losses. Consolidated net loss for the September quarter was Rs 418 crore, smaller than the loss of Rs 495 crore a year ago, but revenue fell 43% year-on-year to Rs 756 crore.
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