Ola Electric shares in focus after Bombay HC stays arrest warrant against CEO Bhavish Aggarwal

Shares of Ola Electric Mobility Ltd. are in focus on Wednesday, February 18, after the Bombay High Court at Goa stayed an arrest warrant issued against the company’s CEO Bhavish Aggarwal by the District Consumer Commission of South Goa.The company in a statement said the High Court also observed that the District Consumer Commission had exceeded its jurisdiction under the Consumer Protection Act while issuing the warrant.

Ola also urged media organisations to “take note of the factual legal position and refrain from speculation”.
Details regarding the consumer complaint and the circumstances which led to the issuance of the arrest warrant were not available yet.
On another note, brokerage firm Citi slashed its rating on the stock to ‘sell’ from ‘buy’ and cut its target price by 51% to 27 apiece from the previous 55.Citi cited slower-than-expected EV penetration in India’s two-wheeler segment, citing that GST reductions on internal combustion engine vehicles have narrowed the gap in prices and slowed electrification.

The analyst also flagged market losses, driven by service-related challenges, intense competition and weak customer perception. Ola Electric’s December quarter results were below estimates due to negative operating leverage.

Shares of Ola Electric Mobility ended the previous session 2.5% lower at 28.11 apiece after hitting a fresh 52-week low of 27.36 in the trading session. The stock has declined for four consecutive trade sessions. It has been in the red for six out of the last seven trade sessions. The stock has declined 7.6% in the past month, 31.8% in the last six months and 32.2% in the past year.

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