Why Bhavish Aggarwal sold his stake in Ola Electric
What's the story
Ola Electric Mobility Ltd's shares have plummeted by nearly 60% in 2025. The company's stock is now trading at a record low of ₹35, over 50% lower than its issue price of ₹76 and significantly down from its peak of around ₹150. The sharp decline has likely prompted founder Bhavish Aggarwal to partially sell his stake in the company.
Loan details
Aggarwal's stake sale linked to personal loan repayment
Aggarwal sold around 2.6 crore stocks through a bulk deal on December 16. The sale was tied to the repayment of a personal loan of around ₹260 crore, taken for his artificial intelligence venture, Krutrim AI. To secure this loan, he had pledged part of his Ola Electric shares with lenders such as Axis Trustee and Aditya Birla.
Market concerns
Analysts highlight risks associated with pledged shares
Analysts have pointed out that the sale may have mitigated risks related to pledged shares amid continuous stock declines. Pledged holdings are usually susceptible to margin calls during sharp price drops, which can trigger forced selling. Sunny Agrawal, SBICAPS's head of fundamental equity research, said the release of pledged shares removes a key overhang on the stock, and investor focus now shifts back to the company's underlying business performance.
Business challenges
Ola Electric's market share and future prospects
Ola Electric's core electric scooter business has been struggling, with volumes yet to scale meaningfully amid intensifying competition. The firm's market share in electric scooters has dropped to around 18% from about 45% at the time of its listing. Analysts have also noted that Ola Electric is working on new business verticals like battery cell manufacturing for its own vehicles and other automotive segments.
Company statement
Ola Electric clarifies on stake sale transaction
In response to the transaction, Ola Electric clarified that it was a one-time and limited monetization by Aggarwal at a personal level to repay a promoter-level loan of ₹260 crore. Post-repayment, all pledged shares, representing some 3.93% of the company's equity, will be released. The promoter group will continue holding around 34% of the firm with no change in promoter control or long-term commitment.