Bhavish Aggarwal sells Ola Electric stake partially after shares slump; analysts flag weak fundamentals

Bhavish Aggarwal sells Ola Electric stake partially after shares slump; analysts flag weak fundamentals

The sharp decline in Ola Electric Mobility Ltd’s share price may have compelled founder Bhavish Aggarwal to sell a portion of his stake, with analysts saying the company’s weak operating performance continues to offer little support to the stock.

Shares of the electric two-wheeler maker are trading at a record low of around Rs 35, down more than 50 percent from the issue price of Rs 76 and sharply lower from a peak of about Rs 150. The stock has fallen nearly 60 percent so far in 2025.

Exchange filings show Aggarwal sold about 2.6 crore shares through a bulk deal on Tuesday, December 16, resulting in a reduction in his shareholding. The sale was linked to the repayment of a personal loan of around Rs 260 crore, raised to fund his artificial intelligence venture, Krutrim AI. To secure the loan, Aggarwal had pledged a portion of his Ola Electric shares with lenders, including Axis Trustee and Aditya Birla.

Analysts said the sale likely helped address risks linked to pledged shares at a time when the stock continued to hit fresh lows. Pledged holdings are typically vulnerable to margin calls during steep price declines, which can lead to forced selling, though the precise trigger for the transaction was not disclosed.

Sunny Agrawal, head of fundamental equity research at SBICAPS, said the release of pledged shares removes a key overhang on the stock, particularly the risk of further sell-offs linked to margin calls. With that pressure now addressed, investor focus shifts back to the company’s underlying business performance, which is only getting weaker, he said.

Analysts said Ola Electric’s core electric scooter business continues to struggle, with volumes yet to scale meaningfully and competition intensifying. The company’s market share in electric scooters has fallen to around 18 percent from roughly 45 percent at the time of its listing, which analysts cited as a key concern.

Some analysts noted that Ola Electric has been developing additional business verticals, including battery cell manufacturing, which could serve both its own vehicles and other automotive segments. Whether these initiatives can offset weakness in the core scooter business will depend on product execution, customer response, and scalability, they said.

Rajesh Palviya of Axis Securities said the stock is trading at an all-time low and that any rebound, if it occurs, is likely to be driven by near-term news flow rather than a fundamental turnaround. The technical setup remains weak, and investors are likely to wait for confirmation through quarterly earnings before reassessing the stock, he said.

Ola Electric said the transaction was a one-time and limited monetisation by the founder at a personal level to repay a promoter-level loan of Rs 260 crore. Following the repayment, all previously pledged shares, representing about 3.93 percent of the company’s equity, will be released. The promoter group will continue to hold around 34 percent of the company, with no change in promoter control or long-term commitment, the company said.

Independent analyst Jayant Mundhra said pledged shares pose heightened risks during sharp stock price declines, as lenders may issue margin calls that lead to selling in the open market. He said that risk was present as Ola Electric’s shares continued to slide and has now been addressed following the transaction.