Ola Electric The IPO had made investors rich by giving bumper returns since the listing. Let us tell you that the IPO price was Rs 76 per share. The IPO listing was slow but after that the stock registered a strong rise. The share record also crossed Rs 157. However, now the stock is continuously declining. The share price has fallen to Rs 102. Due to this, investors who have invested money in it are scared. Why is the stock falling and what will happen next? Let us know.
That's why the stock is falling
Market experts say that hardware and software complaints related to Ola electric scooter have increased. The reputation of the company has been affected by this. This caused the company's stock to fall nearly 8% in five trading sessions last week. It touched a low of Rs 101 per share during intra-day trade on Friday. The stock has declined 35% from its all-time high of Rs 157.40 on August 20. The reason for the fall in the stock of Ola Electric is the upcoming challenges along with increasing competition and the fear of recession in the EV sector. The market share of Ola Electric has declined. Due to this the share prices are coming down.
HSBC maintains buy rating
While Ola's shares are falling, HSBC has maintained its buy rating. HSBC has predicted an increase of 35 percent from the current stock price. HSBC has given a target of Rs 140.
Image Credit: India-Tv.