Ola Electric share price hits 10% upper circuit after promoter completes stake monetisation, removing pledge overhang

Last seen, the stock was locked in the 10% upper circuit band of ₹34.38 on the NSE.

The transaction has resulted in the release of all 3.93% shares that were previously pledged, bringing the promoter’s pledge in the company to zero, the Bengaluru-based firm said in a statement.

The company said the monetisation was a planned, time-bound exercise executed entirely at the promoter’s personal level and was carried out in tranches.

Monetisation of Pledged Shares: A Closer Look

This marked the third consecutive session of promoter selling, with Ola Electric’s shares closing at an all-time low of ₹31.26, down nearly 5%, accompanied by higher-than-average trading volumes.

Aggarwal had offloaded shares worth ₹142.3 crore on Wednesday and ₹91.87 crore on Tuesday. As of September 2025, the promoter group held a 36.78% stake in Ola Electric.

Why has Bhavish Aggarwal sold his shares?

The stake sale is primarily driven by financial and strategic considerations, rather than any intention to exit the company.

Repayment of a promoter-level loan

Aggarwal had previously pledged a portion of his Ola Electric shareholding to secure a ₹260-crore loan. The recent sale of shares has enabled him to fully repay the loan and release all pledged shares.

Market participants typically view pledged shares as a risk, particularly during periods of falling stock prices, as lenders may invoke pledges and trigger forced liquidation. The clearance of pledged shares, therefore, removes a key overhang that had weighed on investor sentiment.

One-time, limited monetisation

Ola Electric and Aggarwal have described the transaction as a one-time, limited monetisation of the promoter’s personal holding and not a reflection of diminished confidence in the company’s prospects.

The company has emphasised that there is no change in long-term strategy or promoter control. Following the completion of the transaction, the promoter group continues to hold over a 34.5% stake in Ola Electric, among the highest promoter ownership levels in India’s new-age listed companies.

Market reaction

Despite the company’s clarification, the market response has remained decidedly negative.

Ola Electric’s stock has declined to fresh 52-week and record lows, with consecutive sessions of promoter selling adding to selling pressure.

Investor sentiment had already been fragile amid earlier exits by institutional investors, including SoftBank and certain automotive partners.

As a result, even as the company maintains that its operations and strategic direction remain unchanged, the market appears to be pricing in elevated risk and uncertainty around Ola Electric’s near-term growth outlook.

Why this matters

• The elimination of pledged shares reduces a key governance and balance-sheet risk.

• Promoter control remains intact, with a substantial shareholding still in place.

• Lower promoter pledging generally contributes to *reduced stock volatility.

Investor concerns

Large promoter stake sales during a period of stock weakness can undermine investor confidence, even when described as planned or financial in nature.

Ongoing challenges such as sluggish EV demand, rising competition, and operational headwinds* may be amplifying the negative market reaction.

What Ola Electric said after the stake sale

Ola Electric emphasised that the transaction does not involve any dilution of promoter control and reflects no change in the founder’s long-term conviction in the company.

The stated objective of the exercise was to eliminate promoter-level leverage and remove any pledge-related overhang, which can introduce avoidable risk and volatility, particularly for recently listed companies, it added.

The company also clarified that the stake sale has no impact on Ola Electric’s operations, governance framework, or strategic direction.

All actions were undertaken at the promoter’s personal level, with no bearing on the company’s balance sheet or business plans, it stated.

With the promoter pledge fully unwound, Ola Electric said its focus remains firmly on execution and on building a globally competitive, India-first electric mobility and clean energy company.

The removal of the pledge overhang is expected to improve transparency and provide greater clarity to shareholders and the market going forward, it noted.