Bhavish Agarwal tops up Ola Electric share pledges as stock hits record low

The sharp decline in Ola Electric’s stock and the rising share pledges by founder Bhavish Aggarwal have raised fresh concerns around promoter-level leverage and its implications for public shareholders. With the stock hitting record lows and market share eroding significantly, the increased pledging now at 13% of Aggarwal’s stake underscores the growing pressure on collateral requirements as the value of pledged shares continues to fall.

Our Founder & MD, Mr. Shriram Subramanian, shared his expert opinion in the Mint article, noting that as the stock price keeps falling, more margin calls and expanded pledges are likely, which could gradually “spiral into a concern.” He also highlighted that while promoter pledging is common, using shares of a listed company to fund a private venture places public shareholders at greater risk. If the private business underperforms, lenders may enforce the pledge, ultimately affecting public shareholders who do not benefit from the private venture’s gains.

Read the full article: https://www.livemint.com/companies/news/bhavish-aggarwal-pledges-more-ola-electric-shares-stock-hits-new-low-two-wheeler-company-11765341645025.html