Ola Share Price Jumps 6%, but Trades Below IPO Price; Here’s Why

Ola Electric Mobility Limited, India’s leading electric vehicle (EV) manufacturer, has seen its share price jump by 6% recently. However, despite this uptick, the stock continues to trade below its initial public offering (IPO) price of ₹76. 

The journey of Ola Electric, from its stock market debut to its current position, has been marked by a series of highs and lows. This article takes a closer look at the key reasons behind the share price movement and the challenges the company faces.

Ola Electric’s Stock Journey

Ola Electric’s stock, which debuted at ₹76 in August 2024, initially saw a positive response, reaching an intraday high of ₹91.20. The stock continued to surge, almost doubling to ₹157.40 by the end of August. However, this surge was followed by a sharp decline, with the stock hitting a low of ₹45.35. 

Regulatory and Operational Setbacks

Several operational and regulatory challenges have impacted Ola Electric’s stock price. In October 2024, the Central Consumer Protection Authority issued a warning after over 10,000 complaints were filed against the company, citing delays, unsatisfactory service, and unprofessional conduct. This raised concerns among investors and led to a downturn in the stock price.

In February 2025, a discrepancy between the reported scooter sales and actual registrations triggered regulatory scrutiny. Ola Electric claimed to have sold 25,000 scooters, but only 8,600 were registered according to official records. This mismatch led to investigations, further denting the company’s reputation and stock performance.

Read More: Ola Electric Shares Drop 4% Amid Regulatory Violations; Stock Down 36% YTD. 

Showroom Closures and Competition

The company also faced reports of showroom closures in Maharashtra in April 2025. Ola Electric clarified that it was unaware of any such notices from authorities ordering the closure of its showrooms. This added uncertainty surrounding the company’s operations.

Meanwhile, competition from established players like Bajaj Auto, TVS Motor, and the emerging Ather has intensified. This competition has put pressure on Ola Electric’s market share, further influencing the stock's downward trajectory.

Financial Struggles and Future Outlook

Ola Electric continues to face financial challenges, with its margins shrinking and its financials remaining in the red. The company has yet to reach a level of profitability that would justify its IPO valuation. Despite the hurdles, the company’s potential in the EV sector remains significant, especially given its vast production capabilities and strong brand presence.

Conclusion

While Ola Electric’s share price has gained 6% recently, it still trades below its IPO price due to a combination of operational setbacks, regulatory challenges, and rising competition. The company’s future performance will largely depend on how effectively it addresses these issues while continuing to innovate in the rapidly growing electric vehicle market.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.