India’s Ola Electric is encountering a slight shake-up recently. SoftBank Group of Japan has slightly pulled out of Ola Electric, the electric scooter maker of Ola, following the selling of its 2.15 percent stake, Thursday’s exchange filing revealed.
This is big news, since SoftBank is the second-largest shareholder in Ola Electric after founder Bhavish Aggarwal, including his selling a total of 94.9 million shares in a series of transactions from July to September. Even Reuters does not know the sales price that remained undisclosed.
It is also interesting and shocking for SoftBank to make this move, since the Indian company has seen a sharp, really sharp pickup in trading volumes recently. The stocks closed over 10 percent steeper in two of the past sessions. Unbelievable!
There are various points as to why this happened. First, the official evaluations.
Before the transaction, SoftBank owned a whopping 786.6 million shares, which is representing 17.83 percent of the company’s paid-up capital. After the sale, its holding already stands at 691.6 million shares or 15.68 percent.
Also, SoftBank has been a consistent backer of Ola Electric of India, investing in several funding rounds prior to getting public. Being the second-largest shareholder then, it is among the biggest institutional shareholders in the company even following the latest stake dilution.
Nevertheless, Ola Electric still has Goldman Sachs.
Meanwhile, what do financial experts say? A lot.
First and foremost, Japan’s economy and much of East Asia’s have stumbled the previous week. Layoffs after layoffs in Chinese business, plus more.
For experts, it’s the Japan bracing for a tsunami. They are saying that SoftBank partly sold its stake for profit booking and portfolio rebalancing, primarily. This sale reflects the strategy of the Japanese firm to realize gains from its investment without actually losing it completely. It also aligns with SoftBank’s broader effort to optimize and diversify its investment portfolio amidst evolving market conditions.
Meanwhile, in other Ola news, Ola Electric has unveiled the dreamy Diamondhead to ridesharing media. Diamondhead is promising to change the way you look at motorcycles.
Among its attributes is its hub-centered steering: enhanced stability, improved suspension properties, and better steering geometry.
However, there are downsides, such as the increased weight and cost due to the system’s complexity and the additional components compared to traditional forks. Steering at lower speeds is also a bit more difficult.
Aside from creating electric vehicles, Ola is also touted India’s biggest mobility and automotive firm that also offers ridesharing services and auto-rickshaws. To join the discussion and share your insights on the biggest stories in ridesharing and food deliveries, create that account on Ridesharing Forum!