The market capitalisation of the company dipped to $4.00 Bn from $4.05 Bn at the end of the last week
One of the primary reasons behind the downward movement has been an increasing number of complaints about the company’s e-scooters in recent times
Earlier this month, the company received a show cause notice from the Central Consumer Protection Authority (CCPA) over alleged violation of consumer rights, misleading advertisement and unfair trade practices
Continuing its downward movement from the past month, share prices of electric two wheeler manufacturer Ola Electric
dipped by about 4% during intraday trading today (October 29) to hit an all time low of INR 74.82.
With this, the market capitalisation of the company dipped to $4.00 Bn from $4.05 Bn at the end of the last week.
It is pertinent to note that the share prices of the company have now dipped below its listing price of INR 76. Since listing on August 9, the company’s share prices gained to almost double of INR 157.53 on August 20.
However, multiple factors have led to the company’s share prices slide down over the past couple of months. One of the primary reasons behind the downward movement has been an increasing number of complaints about the company’s e-scooters in recent times.
For instance, the last 24 hours have seen users take to social media platforms to complain about chaos at the company’s service centres, battery packs and improper servicing.
Stand up comedian Kunal Kamra has emerged as a key opponent of Ola Electric’s escooters in recent times. The comedian has posted multiple times about issues ranging from burning of Ola’s scooters to user troubles on social media platform X. “It’s pathetic how business continues without any public plan to resolve customer complaints,” one of his tweets from yesterday read.
Earlier this month, the company received a show cause notice from the Central Consumer Protection Authority (CCPA) over alleged violation of consumer rights, misleading advertisement and unfair trade practices.
“The CCPA has provided a timeline of 15 days to the company to respond to the show cause notice. The Company will respond to the CCPA within the given timeframe with the supporting documents,” Ola Electric said in a regulatory filing on October 8.
On October 21, the company claimed that it had resolved 99.1% of the 10,644 complaints that it had received from the CCPA. Further, it also said that it has a “robust mechanism” to address complaints raised with respect to its vehicles.
Amid the heightened scrutiny, brokerage firm HSBC cut down its price target for the company from INR 140 to INR 110 but retained its ‘Buy’ tag. The brokerage firm said that the stock remains a high risk-reward stock proposition, where the upside is contingent on the success of EV bikes and in-house batteries.
Comments are closed.