Ola Electric Hits Record Lows As Promoter Selling Weighs — Here's How Mutual Funds Are Positioned

Shares of Ola Electric Mobility Ltd. remained under pressure, trading at record lows after a sharp sell-off triggered by promoter stake monetisation and rising concerns over the company’s competitive position. The stock slipped over 5% intraday to around Rs 31.13 on the NSE.

The recent decline follows promoter Bhavish Aggarwal’s decision to partially monetise his personal stake to fully repay a promoter-level loan of Rs 260 crore. Over the past two trading sessions, Aggarwal sold about 6.8 crore shares through open market transactions, reducing promoter ownership from 36.78% to roughly 33%. The company said the transaction has no impact on operations, governance or long-term strategy.

Despite the selling, Bhavish Aggarwal continues to be the single largest shareholder in Ola Electric, as per the latest BSE shareholding data.

On the institutional side, mutual funds and global asset managers have not exited en masse despite the sharp correction. Motilal Oswal Asset Management holds about 2.5%, while Citigroup, Mirae Asset, Vanguard Group, Norges Bank and BlackRock continue to feature among the top shareholders, albeit with smaller individual stakes.

Other mutual funds with exposure to the counter include HDFC AMC, Helios Capital, Nippon Life, SBI Funds Management and Bandhan Mutual Fund.

Among institutional holders, global and domestic funds continue to maintain exposure. SoftBank-backed SVF II Ostrich DE LLC remains a key shareholder with close to a 15% stake.

Mutual funds, foreign portfolio investors and global passive funds collectively account for a sizeable portion of the free float, indicating that the stock’s sharp fall has so far not triggered broad-based institutional exits.

While promoter stake sale has been the immediate trigger, investors remain concerned about Ola Electric’s weakening market position. Industry estimates suggest its electric scooter market share has fallen sharply from around 46% to nearly 17%, amid intensifying competition from incumbents such as TVS Motor and Bajaj Auto.

Operational momentum has also softened, with average monthly volumes dropping to around 19,500 units from earlier levels of nearly 30,000 units. At the same time, the company’s push into battery cell manufacturing has drawn scrutiny, with analysts questioning whether focus is shifting away from fixing core execution issues in the scooter business.

For now, the shareholding data suggests that while promoters have pared stakes, long-term institutional investors are largely staying put.