Shares of Ola Electric Mobility fell by more than 4% to an intra-day low of Rs 105.15 on Monday, marking the end of the company’s one-month shareholder lock-in period. Today marks exactly one month since Ola Electric’s debut on the stock exchanges.

Stock Performance

Ola Electric’s shares, which had doubled from their IPO price of Rs 76, are now in a corrective phase. The stock has already declined by 30% from its all-time high of Rs 157.4. 

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Following the expiration of the lock-in period, approximately 18.18 crore shares, or 4% of the company’s outstanding equity, will become eligible for trading, according to a note from Nuvama Alternative and Quantitative Research. 

However, it is important to note that the end of the lock-in period does not necessarily mean that all these shares will be sold; they will simply become available for trading.

Market Share and Competitive Pressure

The company has lost market share to competitors such as TVS Motor, Bajaj Auto, Ather Energy, and Hero MotoCorp. In August, Ola Electric’s market share dropped to 32%, while TVS and Bajaj Auto each held 19% of the market.

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Future Sales Challenges 

Sales challenges are expected to intensify in the coming weeks as TVS, Bajaj, Ather, and Hero MotoCorp are set to ramp up their sales and production efforts. A report by Jefferies indicates that Ola Electric’s market share decline is due to increased competition from established players.

HSBC on Ola Electric 

Despite these challenges, HSBC remains optimistic about Ola Electric’s prospects. The bank anticipates a positive risk-reward scenario for the company, expecting a significant reduction in electric vehicle (EV) manufacturing costs by the financial year 2027-2028. Conversely, costs for internal combustion engine (ICE) scooters are expected to rise due to new emission standards.

Ola Electric IPO Details

The company’s shares made a flat debut on the bourses on August 09. The IPO was opened to investors for bidding on August 02 and closed on August 06. The company collected a sum of Rs 6,145.56 crore, out of which Rs 2,763.03 crore was raised from the anchor investors.