Bhavish Aggarwal-led Ola Electric Mobility shares fell sharply in early trade today (January 8), plunging as much as 4%. The recent drop in the firm’s stock prices was caused by the Karnataka High Court’s decision to deny the corporation relief in an ongoing inquiry by the Central Consumer Protection Authority (CCPA). Adding to the company’s troubles, SEBI, the market regulator, identified a compliance failure, citing a delay in revealing critical information about Ola Electric’s shop development ambitions. CEO Bhavish Aggarwal announced the plans on social media before informing the exchanges.
The electric scooter maker’s shares began at Rs 77.09 on the BSE on January 8, down sharply from its previous close of Rs 79.16. Similarly, on the NSE, the stock started at Rs 77.00. Ola Electric’s shares fell to Rs 75.20 in the first few minutes of trading. As of 09:51 AM IST, the stock was trading at Rs 75.92 on the BSE, down 4.09%, and Rs 75.78 on the NSE, down 4.27%.
Ola Electric share performance since listing
Ola Electric’s stock has been on a rollercoaster ride since its launch on the Indian stock exchanges on August 9, 2024. On its listing day, the stock began flat, trading at its issue price of Rs 76 on the NSE and slightly lower on the BSE at Rs 75.99.
The company’s stock has fallen sharply in recent months. The stock has declined 17.18% in the last six months and is now trading at Rs 75.53. Furthermore, Ola Electric’s stock price has dropped 13.98% over the last five days.
Ola Electric’s shares rose to a high of Rs 157.53 on August 20 in the weeks following its listing, before falling precipitously. It reached a 52-week low of Rs 66.66 on November 22, 2024. The company’s market capitalisation as of the most recent report is Rs 22,584 crore.
Ola Electric faces legal setbacks and SEBI Warnings
The latest drop in Ola Electric’s stock price comes after the Karnataka High Court declined to overturn a CCPA notice. As per the regulatory filing, the company on January 7 said, “Regarding our previous intimation to the exchange dated October 07, 2024, October 21, 2024, and December 05, 2024 regarding the intimation of Show Cause Notice received by Ola Electric Mobility Limited (“the Company”) from the Central Consumer Protection Authority (“CCPA”), we wish to inform you that the Hon’ble Karnataka High Court has granted an extension of six weeks for the Company to submit the response in respect of seeking additional documents and information by the CCPA. The Company will ensure a timely response within the specified timeframe.”
Adding to the company’s woes, Ola Electric has also been flagged by SEBI for a compliance lapse. “The Company has received an administrative warning via email on January 7, 2025, issued by SEBI through its letter dated January 7, 2025,” the company added in the BSE filing.
Given recent developments, including legal challenges and a SEBI warning, Ola Electric’s stock will be closely watched in the coming days.
