Ola Electric shares have fallen to an all-time low, dropping below their IPO price.
Ola Electric shares have fallen below their IPO price for the first time, hitting an all-time low amid weak sales and increasing competition in the electric two-wheeler market.
Mumbai, Oct 29 (IANS) Shares of EV two-wheeler company Ola Electric were trading significantly lower on Tuesday, falling below the issue price of Rs 76 for the first time since its listing. The stock opened with a decline, reaching an all-time low of Rs 74.84 during the session.
As of 12 PM, Ola Electric shares were down 3 percent at Rs 75.25.
Listed on the stock market in August, Ola Electric initially saw a sharp rise, hitting a peak of Rs 157.40, but has since dropped nearly 50 percent from that high.
Market experts warn that if Ola's stock remains below the IPO price of Rs 76 for several days, it could face further declines due to selling pressure from both institutional and retail investors.
"Selling is prevalent at all levels. Given the ongoing weakness, investors should avoid this stock and look for companies with strong fundamentals," they noted.
The decline in Ola Electric's shares is largely attributed to weak sales and service issues. According to the government portal Vahan, the company sold 24,665 electric scooters in September, down from 27,857 in August.
Increasing competition in the electric two-wheeler market is also impacting Ola Electric's market share, as major auto manufacturers are entering the sector.
Reports indicate that customers are encountering numerous problems with Ola Electric's EVs, including software glitches and hardware malfunctions. The flagship S1 series scooter has particularly frustrated many customers, who are facing ongoing issues.
Additionally, a shortage of spare parts has led to significant delays in repairs.
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