Ola Electric plunges over 5% intraday after SEBI warning letter; stock is now down 52% from its 52-week high

In a stock exchange filing, the company informed that it received an email warning letter on January 7, 2025, regarding a violation of regulations related to listing and disclosure norms.

Ola Electric shares tanked as much as 5.05% to hit a low of ₹75.16 per piece on the NSE. However, the stock recovered some of the early losses to trade at ₹75.61 apiece, down 4.48% on the NSE at 10:50 a.m. More than 1.45 crore shares changed hands on the bourse, generating a turnover of ₹110.97 crore.

“The administrative warning letter issued by the SEBI in connection with the violation of regulations 4(1)(d), 4(1)(f), 4(1)(h) and 30(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 w.r.t channels for disseminating information shall ensure equal, timely, and cost-efficient access to relevant information for all investors,” the stock exchange filing mentioned.

The warning is linked to information regarding Ola Electric’s plans to expand the company-owned store network fourfold by December 20, 2024.

The company disseminated the information on the stock exchanges at 1:36 pm (BSE) and 1:41 pm (NSE) on December 2, 2024, but it was announced earlier on X (formerly Twitter) at 9:58 am on the same day by Ola Electric promoter and CMD Bhavish Aggarwal.

“The listed entity shall provide adequate and timely information to recognised stock exchange(s) and investors; you have failed to provide the aforesaid information to stock exchanges and all investors in a timely manner,” the market regulator said in the warning letter.

“You are hereby warned and advised to be careful in the future and to improve your compliance standards to avoid the recurrence of such instances, failing which appropriate enforcement action may be initiated in accordance with the provisions of the Securities and Exchange Board of India Act, 1992 and the Rules and Regulations framed thereunder,” SEBI said.

Ola Electric stated that the SEBI warning letter will have no material impact on the company's financial, operational, or other activities.

Meanwhile, in a separate filing after market hours on Tuesday, Ola Electric informed the bourses that the Karnataka High Court has granted the company an extension of six weeks to submit the response to the CCPA's request for additional documents and information.

The company will ensure a timely response within the specified timeframe, Ola Electric Mobility informed the bourses.