Ola Electric Mobility block deal: Shares worth Rs 107 crore exchanged, stock sinks 6%

Mumbai, June 23, 2025 — Shares of Ola Electric Mobility Ltd witnessed heightened activity on Monday as a large block deal involving shares worth ₹107 crore was executed on the exchanges, triggering a sharp sell-off. The stock declined nearly 6% intraday, raising investor concerns about potential offloading by early stakeholders or institutional investors.

Block Deal Details Spark Speculation

According to data available from the NSE and BSE, a total of over 47 lakh shares of Ola Electric Mobility exchanged hands in a single block deal, priced in the range of ₹226 to ₹229 per share — a discount of around 4–5% from the previous closing. The identity of the buyers and sellers remains undisclosed at the time of writing, though market participants speculate it could involve early backers or venture funds trimming their stakes post-lock-in expiry.

A senior trader at a domestic brokerage firm noted,

“This kind of volume, especially near the end of the lock-in period for pre-IPO investors, usually suggests partial exits or portfolio rebalancing. The discount offered also indicates an urgency to offload.”

Stock Falls 6% Intraday; Market Reacts Cautiously

Following the block deal, Ola Electric's shares plunged as much as 6% to hit an intraday low of ₹220 before stabilizing marginally. The stock closed at ₹223, marking a 5.8% decline. The trading volumes surged to over 3 times the 20-day average, indicating widespread retail and institutional interest.

Since its IPO listing in January 2025, the stock has had a volatile trajectory. While it initially rallied over 30% in the first month of trade, concerns around profitability, competition, and EV adoption rates have led to periodic corrections.

Market Context: EV Sector Still in Flux

The sell-off comes amid a broader cautious sentiment in the electric vehicle (EV) sector. Rising input costs, battery price fluctuations, and lagging infrastructure development continue to pressure margins of EV companies. Although the Indian government’s FAME-II extension and state subsidies offer tailwinds, execution delays and supply chain issues persist.

Ola Electric, which leads India’s two-wheeler EV market by volume, has ambitious plans to expand into electric cars and battery innovation. However, investors appear to be weighing growth potential against profitability timelines.

Rajesh Shah, auto sector analyst at Motilal Oswal Financial Services, said:

“While Ola Electric has been a disruptor in the two-wheeler EV space, the valuation premium it commands must be justified by consistent earnings visibility. A block deal of this magnitude raises red flags on internal confidence or strategic shifts.”

Investor Outlook: Watchful But Not Panicking

Despite Monday’s fall, several analysts are advising investors to maintain a long-term perspective. The fundamentals of Ola Electric remain intact, and the company’s aggressive roadmap — including exports, car manufacturing, and lithium cell production — could unlock future value.

Short-term investors, however, may need to brace for further volatility, especially as more pre-IPO shares come up for trade post lock-in. Technical analysts point to ₹215 as a near-term support level, with resistance at ₹235.

Institutional interest remains reasonably healthy. Recent filings indicate mutual funds such as SBI MF and foreign entities like GQG Partners continue to hold significant stakes in the company.

The ₹107 crore block deal in Ola Electric has stirred the market, prompting a nearly 6% drop in share price and raising questions about investor sentiment. While the event underscores the challenges of post-IPO valuation management in high-growth sectors like EVs, analysts believe the long-term story remains largely intact. Investors are advised to monitor developments closely, especially any disclosures on the parties involved in the deal and updates on upcoming product launches or capacity expansions.