SoftBank Group shares rise 3%

SoftBank Group shares rise 3%

SoftBank Group shares rose by 3% on September 2, 2025, amidst news of the company reducing its stake in Ola Electric Mobility. The Japanese investment major, led by Masayoshi Son, sold approximately 94.9 million shares, reducing its holding from 17.83% to 15.68% [1]. This sale, which took place between July 15 and September 2, was part of a broader trend of early-stage backers trimming their exposure to Ola Electric.

The reduction in SoftBank's stake comes as other significant investors, including Tiger Global Management and Hyundai Motor Company, have also reduced their holdings in the electric scooter manufacturer. Tiger Global’s Internet Fund II reduced its holding to 3.24% at the end of June, down from 3.45%, while Hyundai and Kia Corporation offloaded a combined 135 million shares in June [1].

Despite the stake reduction, Ola Electric secured a significant boost by obtaining compliance certification under the government’s Production Linked Incentive (PLI) scheme for its Gen 3 electric scooters. This certification enables the company to access incentives ranging from 13–18% of the sales value of eligible scooters, which could help cushion its financial stress in the coming quarters [1].

Ola Electric's Q1 results, released on September 1, 2025, showed an operating revenue of Rs 828 crore, nearly halving from the same period last year, while net losses widened to Rs 428 crore. The drop in performance is attributed to increased competition in the electric two-wheeler segment and weakened consumer demand [1].

On Thursday, September 5, 2025, Ola Electric shares closed 6.3% lower at Rs 64.59 on the BSE, following the news of SoftBank's stake reduction [1]. Despite the decline, the stock has gained 57.87% over the past month [2].



Historically, Ola Electric's earnings releases have shown mixed results, with 3-day, 10-day, and 30-day win rates all at 33.33%, indicating no consistent directional bias. The maximum return observed during the backtest period was 4.86%, underscoring that significant gains from earnings events have been rare. These findings suggest that while earnings releases may occasionally drive short-term momentum, they have not reliably delivered substantial or sustained returns for investors.

References:

[1] https://economictimes.indiatimes.com/markets/stocks/news/ola-electric-shares-in-focus-as-softbank-trims-stake-to-15-68-in-2-months/articleshow/123709856.cms?UTM_Campaign=RSS_Feed&UTM_Medium=Referral&UTM_Source=Google_Newsstand
[2] https://www.newindianexpress.com/business/2025/Sep/04/softbank-pares-stake-in-ola-electric-to-1568