Ola Electric Lock-in Expiry to Release 441.8 Million Shares, 10% of Equity

Ola Electric Mobility shares are expected to be in focus on August 8 as the one-year lock-in period ends, releasing 441.8 million shares into the market, representing 10% of the company's total outstanding equity. This may lead to short-term selling pressure due to increased supply, but investor sentiment and the company's fundamentals will determine the stock's reaction.

Ola Electric Mobility's shares are expected to be in the spotlight on August 8, as the one-year lock-in period concludes, releasing 441.8 million shares into the market. This represents 10% of the company's total outstanding equity, according to data from Nuvama Alternative & Quantitative Research [2].

The lock-in expiry is a significant event for investors and market participants, as it allows previously restricted shares to become eligible for trading on the open market. This sudden increase in supply can lead to short-term selling pressure, especially if early investors choose to book profits. However, the stock's reaction will largely depend on investor sentiment and the company's fundamentals.

Ola Electric has been focusing on profitability after a period of aggressive growth. The company reported a net loss of Rs 428 crore on revenue of Rs 828 crore for the quarter ended June 30, marking a shift from aggressive penetration to a more balanced, profitable growth strategy [1]. The company's operating revenue nearly halved from a year earlier, indicating a consolidation phase in the electric two-wheeler (E2W) market.

The lock-in release comes at a time when Ola Electric is trimming its stake in the company. Venture capital firm Z47, formerly known as Matrix Partners India, sold less than a 1% stake in Ola Electric during the three months to June, earning up to Rs 187 crore from this share sale [1]. Z47 now holds a 1.93% stake in the company, valued at Rs 347 crore. Tiger Global Management also reduced its stake to 3.24% at the end of June 2025, from 3.45% three months ago, holding Rs 585 crore in the EV maker through its Internet Fund III [1].

Investors should closely monitor the trading activity surrounding Ola Electric Mobility shares on August 8. While the lock-in expiry may increase trading activity and potentially impact the stock price, the company's recent focus on profitability and market consolidation may provide a positive outlook for long-term investors.

References:
[1] https://economictimes.indiatimes.com/tech/technology/ola-electric-early-investors-z47-tiger-global-pare-stakes/articleshow/123120104.cms
[2] https://m.economictimes.com/markets/stocks/news/ola-electric-shares-in-focus-as-lock-in-expiry-frees-up-10-of-equity/amp_articleshow/123178841.cms