Ola Electric shares drop as anchor lock-in period ends

Ola Electric's share price experienced a decline on Friday, following a brief recovery the previous day. The stock fell over 3%, reaching an intraday low of ₹111.01, as the 30-day lock-in period for anchor investors came to an end. This expiration allowed for the potential sale of 18.17 crore shares, which accounts for 4.1% of the company's equity. The lock-in period was designed to stabilize the stock price post-IPO by preventing excessive volatility. The anchor round, which took place on August 1, allocated 36.35 crore equity shares to 84 investors at a price range of ₹72-76 per share, raising a total of ₹2,763 crore. Notable participants included mutual funds managed by SBI, Nippon Life, and HDFC, which collectively represented 40% of the anchor investments. Additionally, several foreign investors, including Goldman Sachs and Morgan Stanley, were involved in the anchor book. Despite the recent downturn, Ola Electric's shares are still trading over 40% above their IPO issue price. However, the stock has shown volatility, with most trading sessions since its listing ending in the red. The second tranche of shares is set to be available for sale after November 4, which may further impact the stock's performance. In light of these developments, CEO Bhavish Aggarwal has announced plans for the company to expand into the three-wheeler vehicle market, following its recent entry into the e-bike segment. This strategic move aims to diversify Ola Electric's product offerings and strengthen its position in the growing electric vehicle sector.