New Delhi. Recently listed company Ola Electric Mobility has caused a big financial loss to its investors. This stock has fallen by about 55% from its highest level, causing a loss of approximately Rs 38,000 crore to investors. On Tuesday, the stock closed at Rs 70, whereas on August 20, it was at its lifetime high of Rs 157. Currently this stock is trading at its all-time low.
In August 2024, the IPO of Ola Electric was launched at Rs 76 per share. After listing, it gained momentum and on August 20 it reached Rs 157, which was more than double its issue price. At this time the market capitalization of the company had reached approximately Rs 69,000 crore. But now it has come down to only Rs 31,000 crore.
Also read- Why did Ramraj Cotton brand join hands with Abhishek Bachchan, the company is preparing to compete with whom?
Customer Experience and Product Quality
The main reason for the fall in shares is considered to be poor customer service and product quality. Many customers have complained about technical problems in the vehicle. A customer said that the brake shoes had to be changed three times in four months. A customer from Varanasi said that the battery and software are getting damaged again and again, due to which the vehicle hangs again and again.
Company’s financial performance
Ola Electric’s poor financial results are also a major reason for the fall in the stock. In the second quarter of the financial year 2024-25, the company suffered a loss of Rs 495 crore, while the income stood at Rs 1,214 crore. In the previous quarter, the company’s income was Rs 1,644 crore, but even then a loss of Rs 347 crore was recorded.
Argument with comedian Kunal Kamra
Ola founder Bhavish Aggarwal’s argument with comedian Kunal Kamra on social media also brought the company into disrepute. The comedian shared the problems being reported by the people with the company’s scooters on his account along with videos and photos. Because of this the company’s reputation took a further hit. Due to such problems being openly exposed in Ola’s scooters, the shares of the company got shocked and witnessed a decline.
Tags: business news, stock market
FIRST PUBLISHED: November 19, 2024, 20:21 IST
