Mumbai: Bhavish Aggarwal-run Ola Electric saw its stock nosedive to almost its debut price of Rs 76 on Friday during the day’s trading, before closing at Rs 77.29 apiece.
After touching Rs 76.73 during the day’s trade, the EV firm’s stock closed marginally higher at Rs 77.29 apiece.
The EV company’s stock has fallen almost 50 per cent from its highest level of Rs 157.40.
Ola Electric’s shares were listed in August. After listing, a sharp rally was seen in the Ola Electric and the counter made an all-time high of Rs 157.40 before starting a steep fall.
According to market experts, the strong support of Rs 86 has broken in Ola Electric and the next target is Rs 75 and the “trend in the counter continues to be negative”.
Market watchers emphasised that once the share price goes below the IPO price and sustains at that level for some time, the counter is likely to face heavy institutional and retail selling due to poor company metrics like slow sales and service-related problems that have affected hundreds of Ola Electric customers.
The stock remains weak and selling is being seen at all levels. Due to the weakness, investors should stay away from this stock and invest in stocks with strong fundamentals, warn market experts.
According to the government portal Vahan, Ola Electric sold 24,665 e-scooters in September. In August, this figure was 27,587. 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 glitching software and spare parts are hard to come by, resulting in inordinate delays.
–IANS