The share price of Ola Electric Mobility jumped sharply in early trade today, December 19, with the stock climbing over 9%. The rise comes after the electric vehicle maker clarified details around a promoter-level transaction, which appears to have eased some investor concerns.
The stock touched an intraday high of around Rs 34.38.
Let’s take a look at the key reasons why the share price of the company is rallying suddenly –
Promoter loan repayment removes a key overhang
The biggest trigger behind today’s rally is the company’s confirmation that a promoter-level loan of about Rs 260 crore has been fully repaid. This repayment was done through a one-time, limited monetisation of a small portion of the founder’s personal shareholding.
The company clarified that this exercise was planned and time-bound, helping address worries around funding pressure at the promoter level.
Promoter pledge drops to zero
Another key factor supporting the stock is the release of all shares that were earlier pledged. The transaction resulted in the release of 3.93% of shares that were earlier pledged, taking the promoter’s pledged holding in Ola Electric down to zero.
Control and ownership remain unchanged
Ola Electric also stated that there has been no dilution of promoter control following the transaction. The promoter group continues to hold a 34.6% stake in the company. The management clarified that the monetisation was carried out entirely at the personal level and has no impact on the company’s business operations, financial performance, or long-term strategy.
Share performance of Ola Electric Mobility
Ola Electric shares remain under pressure. The stock has fallen around 60% so far this year and is down nearly 64% over the past 12 months. The share price of the company is still trading far below its 52-week high of Rs 99.95, though it is hovering closer to its 52-week low of Rs 30.76.
