Ola Electric's shares to be in limelight tomorrow: Here's why
Shares of Ola Electric are set to attract significant attention tomorrow, as the company's share lock-in period concludes. This milestone marks exactly one month since Ola Electric's debut on the stock market on August 9. Following the end of this lock-in period, up to 18.18 crore shares or 4% of the firm's total equity will become eligible for trading.
Share performance and competition
Since doubling from its initial public offering (IPO) price of ₹76, Ola Electric's shares have entered a corrective phase, experiencing a 30% drop from their peak of ₹157.4. The company's market share has also seen a decrease due to intensifying competition from rivals such as TVS Motor, Bajaj Auto, Aether Energy and Hero MotoCorp. Despite these challenges, HSBC maintains an optimistic outlook for Ola Electric, anticipating a significant reduction in EV manufacturing costs by FY2027-2028.
Strategy to regain market share
In response to the recent market share loss, Ola Electric's Chairman and Managing Director Bhavish Aggarwal stated on Friday that the company plans to enhance its distribution and penetration. This strategy is expected to help increase their market share, which stood at 32% in August. The company faces further challenges, as competitors are all gearing up for increased sales and production in the coming weeks.
