Updated 6 June 2025 at 17:05 IST
Ola Electric Share Price: Ola Electric's Founder and CEO Bhavish Aggarwal has infused Rs 23 crore in cash to top up collateral on loans backed by pledged Ola Electric shares, as the company’s stock fell below Rs 50, according to Bloomberg report.
The move underscores the growing pressure on Ola Electric amid mounting losses, sliding market share, and a recent exit by key investors.
Aggarwal had earlier raised Rs 250 crore for his AI venture, Krutrim Data Center Pvt., by pledging part of his equity in Ola Electric. The latest top-up was done voluntarily, with no margin calls triggered, even as concerns about the company’s performance grow.
Exchange data reveals that Aggarwal has pledged or encumbered around 8% of his 30% stake in Ola Electric. The funds were borrowed from Avendus Group, InCred Alternatives, and Modulus Alternatives, against bonds carrying coupon rates between 14.9% and 15.9%, and backed by Ola Electric shares, Bloomberg reported.
A spokesperson for Ola Electric said all founder pledges have been fully disclosed and declined to comment on what they described as “speculative” reports.
The stock, which was listed at Rs 76 in August 2024, has since declined by about 35%, and is currently trading around Rs 48. Over the past week, the stock is down 4.49%, and has lost nearly 50% in the last six months.
This sharp fall in share price comes at a time when the company is rapidly losing ground in the electric two-wheeler market. Ola’s market share has slipped from 49.2% in May 2024 to just 20% in May 2025, as rivals like TVS Motor and Bajaj Auto surge ahead.
Ola Electric’s financials have also added to the concerns. It posted a net loss of Rs 870 crore for Q4 FY25, more than double the Rs 416 crore loss in the same quarter last year.
Annual losses widened to Rs 2,276 crore in FY25 from Rs 1,584 crore in FY24, with a corresponding dip in revenue from Rs 5,010 crore to Rs 4,514 crore.
On June 3, South Korean automaker Hyundai Motor Company fully exited its 2.47% stake in Ola Electric Mobility, selling over 10.88 crore shares for Rs 551.96 crore at an average price of Rs 50.70 apiece. Kia Corporation, also part of the Hyundai-Kia Automotive Group, sold its 0.62% stake—over 2.71 crore shares—for Rs 137.35 crore at an average price of Rs 50.55.
According to data from Trendlyne, Ola Electric Mobility Ltd. has received a "Hold" rating from analysts, based on a consensus of 7 analyst recommendations. The stock has a target price of Rs 59, which suggests an upside of about 21.5% from its current levels.
However, the stock's fundamentals raise some concerns. Ola Electric has a Durability Score of just 25, indicating low financial strength. In comparison, Bajaj Auto has a higher score of 40, pointing to stronger and more stable financials. The Durability Score evaluates long-term factors like revenue stability, cash flows, and debt levels.
The company also has a Valuation Score of 12, meaning it is considered expensively priced compared to its peers. A higher score would have indicated that the stock is a better bargain at its current valuation. Again, Bajaj Auto performs better here too, with a Valuation Score of 20.
On the technical front, Ola Electric's Momentum Score is 25, suggesting the stock is currently bearish. This means there is weak buyer demand and the stock has been under pressure in the short term. In contrast, Atul Auto has a stronger Momentum Score of 37 among its peers.
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Published 6 June 2025 at 16:57 IST