Ola Electric Shares Drop Over 3% as 90-Day Anchor Lock-In Period Expires

Ravi Singh

Ola Electric Shares Drop: Shares of Ola Electric Mobility witnessed a decline of over 3% in early trade on Tuesday as the 90-day lock-in period for a substantial portion of its anchor investor shares expired. The stock price fell as much as 3.74% to ₹77.58 on the Bombay Stock Exchange (BSE).

The end of the lock-in period means that 18.18 crore shares, representing around 4% of Ola Electric’s total outstanding shares, are now available for trading on the open market. However, the expiration of this lock-in period does not guarantee that all these shares will be sold. It only signifies that anchor investors now have the option to trade these shares.

Ola Electric’s initial public offering (IPO) was launched on August 2, 2024, with the company raising ₹6,145.56 crore in total. A day before the IPO opened, Ola Electric secured approximately ₹2,763 crore by allocating 36.35 crore shares at ₹76 per share, which was the upper end of the price band. This allocation went to a range of domestic and international anchor investors.

According to the regulations governing anchor investors in IPOs, shares allotted to anchor investors are subjected to a staggered lock-in period. Fifty percent of these shares are locked in for 30 days, while the remaining 50% are restricted for 90 days. The 30-day lock-in period had expired on September 9, 2024, releasing half of the allocated shares for trading.

The dip in share price reflects market activity in response to the increased availability of shares, though it remains uncertain how many of these newly eligible shares will actually enter the market.