Ola Electric Mobility, the EV maker, after having a relatively positive trading week last week, wherein the company shares expanded by just under a per cent, seems to be back to square one.
Ola Electric Showrooms Raided
The company shares dipped by a wide margin in the early hours of the day's trade on Monday, March 10. The Bengaluru-based company shares dipped by over 2 per cent in the very first hour of the trade.
This development comes at the back of raids that were conducted at Ola showrooms. These raids were conducted by authorities over alleged trade certificate violations.
It is to be noted that this comes at a time, when the company has tried to rapidly expand its presence in the physical market, with on-ground showrooms.
In fact, the Bhavish Aggarwal-led company has led the transformation, putting up over 4,000 showrooms since 2022, singing a departure from its online-only system.
As per the law, all auto dealers, including those that sell two-wheelers like Ola Electric, are required by India's Motor Vehicles Act to prominently display a trade certificate if they maintain unregistered vehicles. |
Violation Of Norms
According to a Bloomberg report, close 95 per cent of these showrooms did not have the adequate certification or trade certificates required under India’s Motor Vehicles Act. Only 100 of the over 3,500 showrooms had a valid document to legally run their showrooms.
As per the law, all auto dealers, including those that sell two-wheelers like Ola Electric, are required by India's Motor Vehicles Act to prominently display a trade certificate if they maintain unregistered vehicles.
For this violation, many showrooms have been raided, with some being closed.
Ola Electric Mobility Ltd Shares
As a result of this, the company that has witnessed an overall period of decline at Dalal Street continued to decline on the trading on Monday as well.
As mentioned before, the company shares started the day on a negative note, with a decline, as it opened at Rs 56.36, lower than Friday's closing.
The company shares after declined by over 2 per cent, declined further.
In fact, at the time of writing, the company shares dipped by 3.41 per cent or Rs 1.93. This took the overall value of the company shares to Rs 54.60 per piece.
