Bhavish Aggarwal Adds ₹20 Crore Collateral as Ola Electric Shares Drop

Ola Electric’s founder and CEO, Bhavish Aggarwal, has made headlines after stepping in to support his company during a sharp fall in its share price. As Ola Electric’s stock dropped by nearly 35% since its listing last August, Aggarwal decided to add ₹20 crore in cash to the collateral for loans taken against his shares. This move comes at a time when the value of his pledged Ola Electric shares had fallen, raising concerns about whether there was enough security for the loans.

Instead of pledging more shares, Aggarwal chose to put in fresh cash. This helped maintain the required collateral and avoided any margin calls from lenders. People familiar with the matter say this was a proactive step, showing Aggarwal’s confidence in both Ola Electric and his new business plans.

Earlier this year, Aggarwal had pledged about 8% of his 30% stake in Ola Electric to raise around ₹250 crore. The funds are being used for his new artificial intelligence startup, Krutrim Data Center. As Ola Electric’s stock continued to slide, topping up the collateral with cash was seen as a smart way to keep his financial commitments on track and protect his new venture.

Ola Electric has faced a tough year, with its share price falling below ₹50 and its market share in electric two-wheelers dropping from 48% to 18%. The situation got worse when big investors like Hyundai and Kia reduced their stakes, following reports of higher losses and regulatory issues.

A spokesperson for Ola Electric said all share pledges by the founder have been fully disclosed and there are no new developments at this time. Market experts believe Aggarwal’s cash infusion, instead of more share pledges, shows careful risk management and belief in his companies’ future.

Industry watchers are keeping a close eye on how Aggarwal balances Ola Electric’s challenges with his push into the AI sector. The next few months will be important as the company tries to win back investor trust and Aggarwal’s new venture looks to make its mark in the tech world.

For more details, see Livemint’s coverage and Business Standard’s report. For official company updates, visit the Ola Electric website.