Shares of Ola Electric Mobility Ltd. picked up pace as it rose by 8% at Rs 33.88 a piece. The stock closed at 31.26 on Thursday and quickly rose as the markets opened on Friday.
Ola Electric confirmed the completion of a one-time, limited monetisation of a portion of the founder Bhavish Aggarwal's personal shareholding, undertaken to fully repay a promoter-level loan of around Rs 260 crore, on Thursday.
The transaction has resulted in the release of all 3.93% shares that were previously pledged, bringing the promoter’s pledge in the company to zero, the Bengaluru-based firm said in a statement.
The company said the monetisation was a planned, time-bound exercise executed entirely at the promoter’s personal level and was carried out in tranches.
Post completion of the transaction, the promoter group continues to hold more than 34.5% in Ola Electric, which remains amongst the highest promoter ownership levels across new-age listed companies, it added.
Ola Electric emphasised that the transaction does not involve any dilution of promoter control and reflects no change in the founder’s long-term conviction in the company.
The stated objective of the exercise was to eliminate promoter-level leverage and remove any pledge-related overhang, which can introduce avoidable risk and volatility, particularly for recently listed companies, it added. The company also clarified that the stake sale has no impact on Ola Electric’s operations, governance framework, or strategic direction.
All actions were undertaken at the promoter’s personal level, with no bearing on the company’s balance sheet or business plans, it stated.
Ola Electric Share Price Today
The scrip reached an intraday high of Rs 34.19 apiece on Friday, which accounts for gains of more than 9%. This compares to a 0.55% growth in the NSE Nifty 50 Index.
The stock has dropped 60.43% on a year-to-date basis, and dropped 64.32% in the last 12 months. The relative strength index was at 40.25.
Out of eight analysts tracking the company, three maintain a 'buy' rating, one recommends a 'hold,' and four suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target of Rs 45.88 implies a upside of 39.4%.
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