Mumbai, Feb 18 (IANS) As shares of Bhavish Aggarwal-led Ola Electric continue to slide, investors have been impacted heavily as approximately Rs 40,000 crore has been wiped out since the company stock's peak valuation.Once valued at Rs 66,000 crore after its initial surge post-listing, the company’s market capitalisation has now shrunk to Rs 26,187.81 crore.
The stock, which made its debut at Rs 76 per share in August last year, has been under constant selling pressure and on Tuesday, it fell over 3 per cent to touch an all-time low of Rs 58.84 on the Bombay Stock Exchange (BSE).
Concerns over mounting losses, declining revenue, ongoing service-related issues and the broader correction in the Indian stock market have contributed to the stock’s downturn.
Last week, the electric two-wheeler (e2W) electric firm reported a 50 per cent spike in its consolidated net loss, which widened to Rs 564 crore in Q3 FY25 from Rs 376 crore in Q3 FY24.
Its operating revenue also declined 19 per cent, falling from Rs 1,296 crore to Rs 1,045 crore during the same period. In its stock exchange filing, the company attributed the increased losses to "highly competitive intensity and service challenges" during the quarter.
However, the electric mobility aggregator claimed that the service issues have been fixed and it continues to focus on growing its presence in the electric two-wheeler market.
The company's market share in the electric two-wheeler sector dropped below 20 per cent in December last year, as compared to 49 per cent in June 2024.
In its exchange filing dated February 7, the company said that "October saw strong performance fuelled by festival sales, however, the overall quarter was weak due to high competitive intensity and service challenges".
The Central Consumer Protection Authority (CCPA) had issued a show-cause notice to the company over allegations of misleading advertising and unfair trade practices.
The regulatory body has sought multiple clarifications from Ola Electric regarding its ongoing investigation.
However, Ola Electric has expanded its store network and claims to have addressed service-related concerns.
--IANS
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