In all, close to 6.8 crore shares were sold in quick succession, a move that unsettled the market and triggered fresh selling pressure. Despite a clarification from the company that the transactions were a one-time and limited monetisation of a small portion of the promoter’s personal holding, investor confidence remained fragile.

“Ola Electric founder-promoter has undertaken a one-time, limited monetisation of a small portion of his personal stake to fully repay a promoter level loan amounting to INR 260 crore. With this, all of the previously pledged 3.93% shares will be released, removing a critical overhang,” the statement by Ola Electric read.

However, the reassurance did little to arrest the slide. The stock had already declined nearly 5% in the previous session and has now fallen about 12% over the past five trading days. Over the last month, Ola Electric shares are down more than 24%, and the stock is trading nearly 59% below its IPO price of Rs 76.

“Post the transaction, the promoter group would continue to hold approximately 34% in Ola Electric, among the highest across new-age listed companies. There is no dilution of promoter control or change in the long-term conviction,” the statement added.

Following the latest transactions, the promoter group is expected to hold around 34% stake in the company, a level Ola Electric has said remains among the higher promoter holdings for newly listed technology firms. Even so, the sharp fall underscores continued caution among investors, as the market absorbs the impact of the rapid promoter sell-down.