The decline in the shares of Ola Electric Mobility Ltd is not stopping. The stock fell more than 7 percent on Tuesday. On Tuesday, the stock opened at Rs 80.04 against the closing price of Rs 80.84. After this the stock has fallen below Rs 75. Let us tell you that the stock was listed in the month of August. Then the stock rose from Rs 75 to cross Rs 140. The stock has also touched an all-time high of Rs 157.40.
Now the problem is that the decline in the stock is not stopping.
Now another big news has come - about 18.2 crore (182 million) shares of the company, which were earlier locked in. Meaning that those shares were restricted from sale. Now, they can be sold. These are about 18.2 crore shares. Which is 4% of the total equity. When a company brings an IPO, some investors are prevented from selling their shares during the " lock-in period " to stabilize the stock prices and prevent sudden sales. (US Election Impact: These shares will run at full speed as soon as Trump becomes president... Know everything) It is usually for six months. But sometimes it is extended to one year. This period helps major investors, such as promoters and anchor investors, to hold their shares, thereby supporting the long-term growth of the company. During the lock-in period, shareholders such as company insiders - employees or early investors are not allowed to sell or trade their shares in the open market. Which helps stabilize the stock price by preventing a large inflow of shares into the market immediately after such events, which can cause volatility. (Stock Market: Shares rise from ₹ 500 to ₹ 5000 - Now L&T bought 21% stake, shares on upper circuit) Once the lock-in period ends, shareholders can sell their shares. This often leads to a sharp decline in the stock. Important meeting to be held on November 8 - Ola Electric Mobility said that an important board meeting will be held. Quarterly results will be announced in this board meeting.
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