Mumbai, 18 February (IANS). Investors have had a huge impact due to the fall in shares of Ola Electric, headed by Bhavish Aggarwal. Since the highest evaluation of the company’s stock, around Rs 40,000 crore has been drowned so far.
The market capitalization of a company with an evaluation of Rs 66,000 crore has now come down to Rs 26,187.81 crore after the listing.
The stock, which started his start at Rs 76 per share in August last year, has been continuously selling. It fell on Bombay Stock Exchange (BSE) on Tuesday to reach the lowest level of Rs 58.84.
Increased deficit, decreasing revenue, existing service-related issues and widespread improvements in the Indian stock market have contributed to the decline in stock.
Last week, the electric two-wheeler firm recorded a 50 percent increase in its consolidated net deficit, which increased from Rs 376 crore in the third quarter of FY 2024 to Rs 564 crore in the third quarter of FY 2025.
During the same period, the operating revenue of the firm also declined by 19 percent to Rs 1,296 crore to Rs 1,045 crore. In its stock exchange filing, the company attributed the “highly competitive environment and service challenges” for the increased deficit during the quarter.
However, the Electric Mobility Agriculture claimed that service related issues have been fixed and it continues to focus on increasing its presence in the electric two-wheeler market.
In December last year, the company’s market share in the electric two-wheeler sector fell below 20 per cent, compared to 49 per cent in June 2024.
In an exchange filing on 7 February, the company said, “There was a strong performance due to festive sales in October, however, the overall quarter was weak due to high competitive environment and service challenges.”
The Central Consumer Protection Authority (CCPA) issued a ‘show show’ notice to the company on allegations of misleading advertising and unfair trade practice.
The regulatory body has sought several clarifications from Ola Electric regarding its ongoing investigation.
However, Ola Electric has expanded its store network and claimed that it has removed service concerns.
-IANS
SKT/ABM
