The Bhavish Aggarwal-led Ola Electric and its performance at Dalal Street appear to be going through a bit of a rough patch as the share prices continue to decline. The stock is in focus, as, on Monday, September 9, the shareholder lock-in for one month ends. In addition, the company also completed a month at the NSE.
Lock-In Period Ends Today
According to Nuvama Alternative and Quantitative Research, this would make 4 per cent or 18.18 crore shares, in the Bengaluru-based company eligible for trading.
Here, a lock-in period is a system that is deployed to stabilise a company's share price before its investors can cash out from the equity. The Ola shares were listed on the equity market, here, the National Stock Exchange, on August 9.
Although the company saw an exponential rise from the day of its listing when it started trading at Rs 76 on NSE. The shares even doubled in price in a matter of days from the listing.
Battling Stiff Competition
Decline in the past 5 trading days |
However, the progress post the initial flourish, has not exactly been flowery for the EV company.
Over the past week or 5 trading sessions, the company shares have lost 10.82 per cent or Rs 12.79 of their value.
This comes at a time when, as per reports, the company has lost market share to many of its rivals, who themselves are established players in the industry.
Facing stiff competition from the likes of Aether Energy, Bajaj Auto Hero MotoCorp and TVS, the company's market share dropped to 32 per cent in the month of August.
Ola Shares Slump Further
Trading data on Monday |
The company shares started Monday, September 9, on a bad note, as the company prices plunged by over 3 per cent at the beginning of the day's trade. The company shares continued to remain in red thereafter as well.
At 09:39 IST, the Ola Electric shares dropped by 3.39 per cent or Rs 3.71. This added to the momentum of decline, tracking the overall value of shares to Rs 105.86 per piece.
