Ola Electric Shares: Ola Electric Mobility Ltd’s (NSE: OLAELEC) share fell by about 4 % in early trade on Monday (9th September). This decline in the company’s share has come on a day when the lock-in period of about 18.18 crore shares of it has ended on Monday.
The expiration of the lock-in period signifies that, from now on, these shares can be used to buy and sell. They represent around 4 % of the total stake in the company.
One month of listing of Ola Electric Mobility Ltd in the stock market has been completed. A brokerage firm had said in a report that with the completion of one month of listing, the lock-in period of its 18.18 crore shares will end.
It is nevertheless important to note that the conclusion of the lock-in period does not necessarily mean all the shares will be compulsorily traded. This means that these shares will now simply become eligible for trading.
The brokerage firm said in its report that the lock-in period of shares worth about $21 billion of a total of 38 companies will end between September 5, 2024 and November 30, 2024.
The brokerage said that it is important to be aware that not all shares will be purchased since a large portion of them are held by the promoter and promoter group.
Meanwhile, another brokerage firm has started covering shares of Ola Electric Mobility Ltd with a target price of Rs 140. Although the brokerage firm has a bearish stance on electric vehicles (EV) in India.
The brokerage believes that Ola Electric Mobility Ltd is ‘worth investing in’ due to the continued support from the government at the policy level, and the ability to reduce costs and focus on battery manufacturing.
Bhavish Aggarwal of Ola Electric Mobility Ltd believes that traditional two-wheeler companies face the risk of eliminating their ICE models, and their balance sheets may be affected while pursuing the electric mobility business.
Let us tell you that Ola Electric Mobility Ltd’s share was listed flat at its IPO price of Rs 76, since then the company’s share has gained about 44 percent.
Quick Fact
| Company name | Ola Electric Mobility |
|---|---|
| Share fell by | 4% |
| Date of decline | 9th September |
| Reason for decline | Lock-in period ended |
| % of total stake | 4% |
| Shares eligible for trade | After lock-in period |
| Share price at 9.40 am | ₹105.3 |
| Initial listing price | ₹76 |
| Share price gain since IPO | 44% |
| Possible target price | ₹140 |
| Positive factors | Government support, cost reduction, battery focus |
| Potential risk for competitors | Elimination of ICE models, impact on balance sheets |
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