Bhavish Aggarwal, founder and Chief Executive Officer of Ola Electric Mobility, sold more than 2.6 crore equity shares of the electric two-wheeler company on December 16, 2025. The bulk deal transaction was valued at approximately Rs 92 crore, with shares offloaded at an average price of Rs 34.99 apiece. This move was part of a larger effort by Aggarwal to fully repay a promoter-level loan totaling Rs 260 crore.^[1][2][3][4] ### Founder Repays Significant Promoter Loan The sale of 2,62,56,748 equity shares on Tuesday was a calculated step by Bhavish Aggarwal. Its primary purpose was to settle a substantial Rs 260 crore loan taken at the promoter level.^{[2][3][5][6][7]} This transaction also led to the release of approximately 3.93% of previously pledged shares, effectively removing a significant financial overhang on the company's stock.^{[3][5][8][7][9]} Ola Electric clarified that this share sale represented a "one-time, limited monetisation" of a small portion of Aggarwal's personal stake.^[2][7] The company emphasized that this personal transaction would not dilute promoter control or affect Ola Electric's operations, governance, or strategic direction.^[10][7][9] Aggarwal's intent is to operate with zero promoter pledge, aiming to eliminate leverage-related risks and potential stock volatility.^[10][11] Following the initial Rs 92 crore sale, Aggarwal sold an additional 4.2 crore shares on December 17, 2025, worth approximately Rs 142 crore.^[12][10][13] These combined sales, totaling around Rs 234 crore, were undertaken to complete the repayment of the Rs 260 crore promoter loan.^[12][10] As of September 2025, Bhavish Aggarwal held a 30.02% stake in Ola Electric.^[2][3][6] After these transactions, the overall promoter group is expected to hold about 34% in Ola Electric, which the company states is among the highest promoter holdings for newly listed technology firms.^{[10][14][7][9]} ### Market Reacts to Share Sale The market responded to the news with Ola Electric shares trading near their 52-week low.^[5] On December 16, the shares ended with an 8.5% decline at Rs 34.20 on the National Stock Exchange.^[4] The stock has seen a significant drop, widening the gap between its current market price and its IPO issue price of Rs 76 by 55%.^[4] On December 17, Ola Electric shares hit an all-time low of Rs 32.67 on the NSE.^[8][10] This downward trend reflects sustained selling pressure the stock has experienced over recent weeks, with a fall of more than 19% in the last month and around 41% in three months.^[5] Ola Electric's initial public offering (IPO) in August 2024, valued at Rs 6,146 crore, experienced a lackluster debut, listing flat on both the BSE and NSE.^[4][15] Despite the overall issue being oversubscribed 4.45 times, the stock's performance post-listing has remained challenging.^[4] The company has been grappling with slowing demand, a declining market share, and persistent financial losses.^[10][16] For the second quarter of the financial year 2025-26, Ola Electric reported a consolidated net loss of Rs 418 crore, although this was narrower than the Rs 495 crore loss a year earlier.^[12][16] However, revenue sharply declined by 43% year-on-year to Rs 756 crore, indicating ongoing challenges in a competitive market.^[16] ### AI Venture Connection and Pledge Removal The promoter-level loan that Bhavish Aggarwal repaid was primarily used to seed fund his artificial intelligence (AI) startup, Krutrim AI.^[8][6][7][9] Aggarwal had previously pledged a portion of his Ola Electric shares to secure financing for Krutrim AI.^[8] Pledging by a promoter is often viewed by public market investors as a potential sign of financial stress, and this perception can weigh on a company's stock performance.^[8][11] The complete elimination of these pledged shares is therefore seen as a positive governance signal, as it removes a critical overhang and strengthens the company's risk profile.^[7][11] The move aims to remove the risk of sudden equity selling due to potential margin calls, which can cause volatility.^[11] With Krutrim AI reportedly re-emerging as a cloud infrastructure player with positive cash flows, Ola Electric does not anticipate further promoter pledges for this venture.^[6][7][9] ### Ola Electric's Market Position and Future Ola Electric has raised a total of $1 billion across 14 funding rounds since its inception.^[17][18] Its valuation has fluctuated, reaching approximately $6 billion in a May 2023 funding round.^[19] However, the company reportedly slashed its IPO valuation target to $4 billion due to a global recalibration of tech stock valuations.^[15] In August 2024, following the launch of new electric motorcycles and plans for in-house battery production, its valuation surged to nearly $7 billion.^[15] Despite recent market challenges and the share sale, Ola Electric continues its efforts to build a vertically integrated, India-led electric mobility and clean energy platform.^[7][9] The company has been expanding its product line, including the launch of electric motorcycles, to intensify competition in India's two-wheeler market.^[15] While EV adoption in India is growing, it faces hurdles such as range anxiety, insufficient charging infrastructure, and low resale values.^[15] Analysts are closely watching Ola Electric, with some holding a "buy" rating and price targets suggesting potential upside, contingent on improvements in revenue growth and progress toward profitability.^[5][9] The company's management remains committed to its long-term strategic plans.^[7][9]

AI Insights Hub