New Delhi: The decline in Ola Electric shares continues. Shares of the company owned by Bhavish Aggarwal fell by more than 5 percent in early trade on Monday (September 9). The lock-in period of about 18.18 crore shares also ended today. This means that now the restriction on selling these shares has been removed. If investors want, they can exit the company by selling these shares. However, it is not necessary to do so.

According to a report by Nuvama Institutional Equities, the lock-in period of shares worth about $21 billion of a total of 38 companies, including Ola Electric, will end between September 5, 2024 and November 30, 2024. However, the brokerage also clarified that not all these shares will be sold, as a large part of them is also with the promoter and promoter group.

Shares of Ola Electric were trading 5.10 per cent lower at Rs 103.98 at 1 pm. However, the stock saw a sharp recovery thereafter and closed at Rs 114.10, up 4.13 per cent. 

Brokerage stance on Ola Electric

Brokerage firm HSBC is covering Ola Electric shares with a target price of Rs 140. It has a very conservative view on electric vehicles (EV) in India. But, the brokerage feels that the Indian government is continuously supporting electric vehicles on the policy front. At the same time, Ola has the facility of battery manufacturing, due to which it can reduce costs. This is the reason why HSBC has described Ola as worth investing.

Why did Ola Electric shares fall?

Ola Electric's losses are increasing continuously. This is the reason why many experts were calling Ola's IPO very expensive. Also, Ola Electric's market share also declined. It was 49 percent in the June quarter, which fell to 31 percent at the end of August. At the same time, the market share of Ola Electric's rival companies like TVS and Bajaj Auto is increasing. This is also increasing the concern of Ola's investors and they are exiting it by selling.