Ola Electric Shares Plunge 5% Amid Profit Booking

New Delhi, Aug 22 (PTI) Shares of Ola Electric Mobility plunged 5 per cent on Thursday as investors booked profits after its price surge since listing this month.

The stock of the company plunged 4.96 per cent to close at Rs 131.30 apiece on the BSE.

On the NSE, it declined 4.71 per cent to settle at Rs 131.55 per piece.

In the intraday session, the scrip of Ola Electric Mobility tumbled more than 8 per cent to hit a low of Rs 125.96 and 126.05 apiece.

The stock has experienced a spectacular rally since its listing, with the stock surging as much as 107 per cent to hit Rs 157.5 on August 20.

The shares of Ola Electric made its debut on August 9.

On the volume trade, 10.72 crore equity shares were traded on the NSE and 1.43 crore scrips changed hands.

The BSE Sensex rose 147.89 points or 0.18 per cent to close at 81,053.19 and the NSE Nifty went up by 41.30 points to end at 24,811.50.

In an interaction with PTI, Ola founder and CMD Bhavesh Aggarwal said the newly-listed Ola Electric has laid out a roadmap to profitability banking on higher volume, vertical integration of supply chain and in-house produced cells, while it has shelved plans to make electric cars.

In the first quarter of this fiscal, Ola Electric's automotive segment EBITDA was almost break-even but for a one-time reversal of about Rs 30 crore it had to pay for a change in standard operating procedure in the government for PLI rules, he said, adding the cell segment is at a different stage of evolution.

Ola Electric's net loss widened in the first quarter to Rs 347 crore from Rs 267 crore in the corresponding period a year ago. In FY24, the company's net loss was Rs 1,586 crore.

When asked if the electric car project is off the table, Aggarwal said, "Yes. We are not working on it right now. Our vision is to build products relevant for India and build technologies to enable those products at scale and we're going in a sequence, two-wheelers and then other products".

"India needs to build a sustainable paradigm of energy and automotive. The global solution for sustainability is (electric) luxury cars... That's not relevant for India. India is (electric) two-wheelers, three-wheelers, maybe small cars," he said.