Mumbai: EV two-wheeler company Ola Electric shares were trading in the deep red Tuesday as the stock slipped below the issue price of Rs 76 for the first time in its listing history.
Shares of Ola Electric opened with a decline on Tuesday. During the trading session so far, the stock made an all-time low of Rs 74.84.
At 12 P.M., Ola Electric shares were down 3 per cent at Rs 75.25.
Ola Electric’s shares were listed in the stock market in August this year. After listing, a sharp rally was seen in Ola Electric and the counter touched an all-time high of Rs 157.40 before starting a steep fall and has slipped almost 50 per cent from its highest level.
According to market experts, if Ola’s stock remains below its IPO price of Rs 76 for a few days, it may see a further decline due to selling by institutional investors and retail investors.
“Selling is being seen in shares at every level. Due to continued weakness, investors should stay away from this stock and invest in companies with strong fundamentals,” they added.
The reason for the weakness in the shares of Ola Electric is being attributed to the company’s weak sales figures and poor service.
According to the government portal Vahan, the company had sold 24,665 electric scooters in September and this figure was 27,857 in August.
The reason for the falling market share of Ola Electric is the increasing competition in the market.
Big auto companies are also trying to establish their foothold in the electric two-wheeler sector.
According to reports, customers are facing many problems in Ola Electric’s EV, which include problems related to software, hardware and service centres.
Ola Electric’s flagship S1 series EV scooter has become a nightmare for hundreds of customers who are consistently facing issues like malfunctioning hardware and glitch in software.
Spare parts are hard to come by, resulting in inordinate delays in repairs.