Ola Electric Share Price Up Nearly 10% Despite Ongoing Troubles
At least six Ola Electric stores—two in Jabalpur and four in Indore—were raided on March 12 and March 18, respectively, according to inspection letters seen by NDTV Profit.
Ola Electric's shares rose in trade on Friday by nearly 10% despite ongoing troubles. The company's troubles have deepened further with raids on its stores in Madhya Pradesh.
At least six Ola Electric stores—two in Jabalpur and four in Indore—were raided on March 12 and March 18, respectively, according to inspection letters seen by NDTV Profit. All the so-called "experience centres" were found to be retailing electric scooters without trade certificates.
News of the Madhya Pradesh raids comes close on the heels of the crackdown in Maharashtra, where officials from five regional transport offices conducted inspections at as many as 26 Ola Electric stores in Mumbai and Pune.
These checks were related to alleged violation of trade certification norms, people aware of the development said late Wednesday. A total of 36 Ola Electric scooters were confiscated.
Action was taken on the basis of a complaint filed by Pritpal Singh & Associates, Gurugram, which alleged Ola Electric “is setting up showrooms, stores and service centres in Maharashtra by obtaining a single trade certificate," according to an inspection report signed by deputy transport commissioner, Ravi Gaekwad.
Ola Share Price
Ola Electric stock rose as much as 9.98% during the day to Rs 56.87 apiece on the NSE. It pared gains to trade 7.39% higher at Rs 55.53 apiece, compared to a 0.66% decline in the benchmark Nifty 50 as of 1:50 p.m.
It has fallen 39.12% since listing. Total traded volume so far in the day stood at 3.9 times its 30-day average. Relative strength index was at 50.
Four out of eight analysts tracking the EV maker have a 'buy' rating on the stock, two recommend a 'hold' and two suggest a 'sell', according to Bloomberg data. Average of 12-month analysts' price targets implies a potential upside of 33.3%.
