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Ola Electric Mobility share price hit its 10% upper circuit of ₹34.40 in intra-day deals on Friday, December 19, after the company confirmed the completion of a one-time, limited monetisation of a portion of the founder’s personal shareholding. The exercise was undertaken to fully repay a promoter-level loan of around ₹260 crore.

The Bengaluru-based EV maker said the transaction led to the release of all 3.93% shares that were earlier pledged, bringing the promoter’s pledge in the company down to zero.

"Ola Electric confirms that the promoter has completed the one-time, limited monetisation of a small portion of his personal shareholding. The transaction was undertaken solely to repay a promoter-level loan of approximately ₹260 crore fully and to release all 3.93% shares previously pledged, thereby eliminating all promoter pledges," it said in a press release.

Following the transaction, the promoter group continues to hold 34.6% in Ola Electric, with no dilution of promoter control or change in long-term commitment. This was a planned, time-bound exercise executed entirely at the promoter’s personal level and has no impact on the company’s performance, operations, or strategic direction, stated the company.

It added that Ola Electric remains focused on building a globally competitive, India-first electric mobility and clean energy company.

The stock was locked in its 10% upper circuit of ₹34.40. This comes after an over 17% decline in the stock in just three sessions as founder and promoter Bhavish Aggarwal consistently sold part of his stake. The stock had sharply declined to hit an all-time low of ₹30.76 per share on December 18. It had crashed 80% from record high of ₹157.4 on August 20 last year.

Bhavish Aggarwal, founder and promoter of Ola Electric Mobility Ltd, pared his stake in the company for the third straight session on Thursday, selling 2.83 crore equity shares worth ₹90.3 crore at an average price of ₹31.9 per share.

Aggarwal had sold 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. The stake sale, the company had said, is driven by financial and strategic considerations and does not reflect any intention to exit the business.

A key driver behind the sales was the repayment of a promoter-level loan of around ₹260 crore. Aggarwal had earlier pledged a portion of his Ola Electric shareholding to raise the loan, and the recent monetisation has enabled him to fully repay it and release all pledged shares. “The objective was to eliminate promoter-level leverage and remove any pledge-related overhang,” Ola Electric said.

Market participants often view pledged shares as a risk, especially during periods of falling stock prices, as lenders may invoke pledges and trigger forced selling. The clearance of all pledged shares removes a major overhang that had weighed on investor sentiment and is seen as a positive from a governance perspective.

Investor sentiment was already fragile following earlier exits by institutional investors, including SoftBank and some automotive partners. Ongoing challenges such as sluggish EV demand, rising competition and operational headwinds appear to be amplifying the negative market reaction.

Ola Electric reiterated that the transactions were undertaken entirely at the promoter’s personal level and have no impact on the company’s operations, governance or strategic direction. “With the promoter pledge fully unwound, our focus remains firmly on execution and building a globally competitive, India-first electric mobility company,” the company said.

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