Shares of Ola Electric Mobility Ltd. plunged over 7% in trade on Tuesday, effectively erasing the previous session's gains, after the government's new guidelines in the Electric Vehicle Manufacturing Scheme on Monday drove stock 6.75% higher.
The company also saw 14.17 crore shares change hands in five large trades at the price range of Rs 50–52 apiece on National Stock Exchange.
On Monday, the Ministry of Heavy Industries notified detailed guidelines for the "Scheme to Promote Manufacturing of Electric Passenger Cars in India," in a major push to attract global investments and bolster India's electric vehicle ecosystem.
The initiative is a part of the government's broader mission to achieve net zero by 2070 and make India a global manufacturing hub for electric vehicles.
Under the scheme, approved applicants will be allowed to import completely built-up electric four-wheelers with a minimum CIF value of $35,000 at a reduced customs duty of 15% for five years from the date of application approval.
The imports will be capped at 8,000 units per year, with unutilised limits allowed to carry over. The total duty foregone under the scheme is capped at the lower of Rs 6,484 crore or the investment made.
Ola Electric Mobility Share Price
The scrip fell as much as 7.17% to Rs 49.83 apiece. It pared losses to trade 6.33% lower at Rs 50.28 apiece, as of 10:30 a.m. This compares to a largely flat NSE Nifty 50 Index.
It has fallen 44.86% since listing. Total traded volume so far in the day stood at 19 times its 30-day average. The relative strength index was at 45.61.
Out of eight analysts tracking the company, three maintain a 'buy' rating, two recommend a 'hold,' and three suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 0.2%.
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