Ola Electric shares tumble 9% after 17% rally in 4 days. Why brokerages remain cautious
Ola Electric shares fell sharply on Friday, snapping a four-day winning streak as investors assessed the EV maker’s proposed rights issue and ongoing funding needs. Despite a recent recovery, the stock remains well below its peak. Brokerages including Citi and Kotak continue to maintain bearish views, citing operational and cash-burn concerns.
Ola Electric shares experienced a significant drop of 9% on Friday, following a 17% gain over four days. The stock fell to Rs 38.75 per share on the NSE, reducing the company's market capitalization to around Rs 18,000 crore. Ola Electric, led by Bhavish Aggarwal, is reportedly considering a rights issue to raise funds, which could take place at a board meeting on September 28.
The company had previously raised Rs 780 crore through a QIP in June. Despite recent volatility, Ola Electric's shares are still below their IPO price. The stock peaked at Rs 157.40 in August 2024 and fell to a low of Rs 22.25 in March 2026, with a slight recovery seen so far in 2026. However, brokerages remain cautious about Ola Electric shares.
Citi, Kotak Institutional Equities, and Goldman Sachs have all issued 'Sell' or 'Neutral' ratings, citing concerns over weaker volumes, lower gross margins, and high cash burn rates.
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