 "Ola Electric share tanks 5% on Sebi's administrative warning; details here")
Ola Electric share price: Electric vehicle (EV) maker Ola Electric shares dropped as much as 5 per cent to hit an intraday low of Rs 75.20 per share on Wednesday, January 8, 2025.
The fall in Ola Electric share price came after the markets regulator Securities and Exchange Board of India (Sebi) issued an administrative warning letter over disclosure violations.
“The Company has received an administrative warning via email on January 7, 2025, issued by SEBI through its letter dated January 7, 2025,” Ola Electric said in a statement.
The letter from Sebi highlighted that the company announced its expansion plans on the microblogging platform X (formerly Twitter) before officially disclosing the information to the stock exchanges.
The warning relates to CEO Bhavish Aggarwal's announcement of a major expansion plan. On December 20, 2024, Aggarwal, via twitter, said, “Taking the Electric revolution to the next level this month. Going from 800 stores right now to 4000 stores this month itself. Goal to be as close to our customers as possible. All stores opening together on 20th Dec across India. Probably the biggest single day store opening ever!"
However, the expansion event ultimately took place on December 25, 2024.
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Sebi's letter stated that Ola Electric delayed informing the stock exchanges. While the disclosure was made to the Bombay Stock Exchange (BSE) at 1:36 PM and the National Stock Exchange (NSE) at 1:41 PM on December 20, 2024, Aggarwal’s post on X appeared earlier that morning at 9:58 AM.
Sebi stressed that this approach violated fair disclosure norms, as it deprived all stakeholders of equal and timely access to crucial information.
The letter warned Ola Electric to enhance compliance standards and avoid similar violations in the future. Failure to comply may lead to enforcement action under the Sebi Act, 1992.
Despite the warning, Ola Electric clarified that the issue would not materially impact its financial position.
In a separate development related to the CCPA’s show cause notice (SCN), Ola Electric said that the Hon’ble Karnataka High Court has granted an extension of six weeks for the Company to submit the response in respect of seeking additional documents and information by the CCPA.
The company will ensure a timely response within the specified timeframe, it added.
About Ola Electric
Ola Electric, a pure EV player in India, is developing vertically integrated technology and production capabilities for EVs and EV components, including batteries.
The Bhavish Aggarwal-led company, which has approximately a 35 per cent market share in India's electric two-wheeler market in FY24, is focused on developing vertically integrated technology and production capabilities for EVs and EV components, including cells.
The market capitalisation of Ola Electric is Rs 34,541.21 crore, according to BSE. The company falls under the BSE IPO category.
At 11:36 AM, Ola Electric shares were trading 1.07 per cent lower at Rs 78.31. In comparison, BSE Sensex was trading 0.51 per cent lower at 77,802.17 levels.