Bhavish Aggarwal Sells Ola Electric Shares Worth Rs 92 Crore To Repay Loan
Bhavish Aggarwal, the chairman and managing director of Ola Electric Mobility, sold 2.6 crore equity shares at Rs 34.99 apiece.
Ola Electric Mobility Ltd. founder and promoter Bhavish Aggarwal sold shares worth Rs 92 crore via open market transactions on Tuesday.
Aggarwal, the chairman and managing director of the electric two-wheeler maker, sold 2.6 crore equity shares at Rs 34.99 apiece, as per bulk deal data on the National Stock Exchange. The buyers of the stock could not be ascertained.
He held a 30.02% stake as of September. Of this, 10.11% is pledged with lenders and 66.63% locked in, as per BSE shareholding data.
Bhavish Aggarwal had sold 3.8 crore shares via IPO in August last year at Rs 76 per share.
The company called Tuesday's transaction "a one-time, limited monetisation" of a small portion of Aggarwal's personal stake to fully repay a promoter level loan amounting to Rs 260 crore.
"With this, all of the previously pledged 3.93% shares will be released, removing a critical overhang. Post the transaction, the promoter group would continue to hold approximately 34% in Ola Electric, among the highest across new-age listed companies," the statement said.
Ola Electric said there is no dilution of promoter control and the deal is taken to "eliminate all promoter pledges, which can introduce avoidable risk and volatility".
"It is part of the founder's conviction that Ola Electric should operate with zero pledge overhang, and he should fully unwind the leverage. The transaction is being executed entirely at the promoter’s personal level and would have no impact on Ola Electric’s operations, governance, or strategic direction," the statement said.
Ola Electric Share Price Movement
Earlier in the day, Ola Electric Mobility share price ended 8.5% lower at Rs 34.48 apiece, compared to a 0.6% decline in the benchmark Nifty 50. The stock is down 60% year-to-date and recently hit an all-time low of Rs 33.2.
The total traded value was Rs 254 crore with a delivery ratio of 51%.
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 an upside of 33%.
