Ola Electric Share Price News: Ola Electric shares have gained nearly 10% as CEO Bhavish Aggarwal sold a part of his personal stake to repay a promoter-level loan of ₹260 crore and canceled all promoter pledges.
Ola Electric Share Price Hike: Shares of Ola Electric Mobility surprised investors on Friday, December 19. After three consecutive days of decline, the stock saw a sharp rise of about 10%. The biggest reason for this is the announcement from the company, which strengthened the confidence of the market again. In fact, Ola Electric promoter and CEO Bhavish Aggarwal has completely repaid the promoter-level loan of ₹ 260 crore by selling a small part of his personal stake. With this, all the promoter pledges on the company have ended.
Ola Electric Share Today
Shares of Ola Electric reached ₹34.38 in Friday morning trade. With this the stock broke its three-session decline. This surge has come at a time when investors were increasingly worried about promoter stake sales.
What did Ola Electric say?
In an exchange filing released on the evening of December 18, Ola Electric made it clear that Bhavish Aggarwal has completely repaid the loan of about ₹260 crore by selling a part of his personal stake. With this move, all the 3.93% pledged shares were released. There is no promoter pledge left on the company now. The company also clarified that even after this transaction, the promoter group’s stake remains at 34.6%. This will not have any impact on promoter control, long term commitment or company strategy. According to Ola Electric, this entire process was planned in advance, was for a limited time and was done entirely at the personal level of the promoter.
Why did Ola Electric share fall earlier?
In the last few days, there was huge pressure on the shares of Ola Electric. The stock had fallen more than 17% in just three sessions due to continuous stake selling by Bhavish Aggarwal. On December 18, the stock had fallen to ₹30.76, an all-time low. If seen on a broader scale, the stock has fallen more than 80% so far from its record high of ₹157.40 (August 20).
How many shares did Bhavish Aggarwal sell?
On Thursday, Bhavish Aggarwal sold 0.6% stake through a bulk deal. The value of this deal was around ₹ 90.28 crore. They sold 2.83 crore shares at a price of ₹31.90 per share, which was about 3% discount from Wednesday’s closing price. During this period, more than 6.6 crore shares were traded, which was almost double as compared to the previous day.
Disclaimer: This article has been prepared for general information and educational purposes only. The information given herein is not any kind of investment advice, buy or sell recommendation. Investing in the stock market is subject to market risks and fluctuations in share prices are possible. Before making any investment, definitely consult your financial advisor.