Ola Electric’s share price dropped over 5% on Tuesday, November 5, 2024, as the 3-month lock-in period for anchor investors ended. The shares fell to ₹74.85, down 7.36% on the Bombay Stock Exchange (BSE).
On November 5, 2024, marked the end of the anchor lock-in period for 50% of Ola Electric’s shares, which amounts to approximately 18.18 crore shares, or 4% of the company’s total outstanding shares. This means that these shares, previously locked up by anchor investors, can now be traded in the market. However, it’s worth noting that the end of the lock-in period doesn’t mean that all these shares will be sold immediately; they are simply available for trading.
Earlier, a 30-day lock-in period for another 50% of shares had ended on September 9, 2024. According to regulations, shares allocated to anchor investors during the IPO are subject to a lock-in period: 50% for 30 days and the remaining 50% for 90 days.
Ola Electric launched its IPO on August 2, 2024, raising ₹6,145.56 crore from the primary market. Just before the IPO opened, the company secured ₹2,763 crore from anchor investors by issuing 36.35 crore shares at ₹76 per share, the upper limit of the price band. The stock had a flat debut on August 9, listing at ₹76 on the National Stock Exchange (NSE) and at ₹75.99 on the BSE.
Since its listing, the stock price has fluctuated, reaching a high of ₹157.53 on August 20 and a low of ₹74.82 on October 29.
Ola Electric has announced that its Board of Directors will meet on Friday, November 8, 2024, to discuss and approve the unaudited standalone and consolidated financial results for the quarter and half-year ending September 30, 2024, along with the auditors’ Limited Review Report.
Founded in 2017, Ola Electric Mobility Limited is a company that focuses on electric vehicles. It mainly manufactures electric scooters and essential parts for these vehicles, such as battery packs, motors, and frames. All of these components are produced at the Ola Futurefactory. Ola Electric is the leading manufacturer of e-scooters in India, holding a 31% market share in the electric two-wheeler (E2W) sector. In the fiscal year 2024, the company sold 329,618 scooters.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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