Ola Electric Promoter Pledges Shares to Secure Krutrim Data Centre Financing

Ola Electric informed stock exchanges on 10th September that promoters created a pledge over 10,71,70,404 equity shares, representing 2.43% of the company's total equity capital and 8.09% of promoter shareholding. The shares have been pledged in favour of Axis Trustee Services Limited on behalf of multiple financial institutions including Avendus Structured Credit Fund II, Avendus Finance Private Limited, and several Incred Credit Opportunities funds to secure debentures issued by Krutrim Data Centre Private Limited.

This pledge replaces an existing Non-Disposal Undertaking (NDU) that had been in place since the promoter share lock-in period expired under SEBI regulations. The company noted that during the transitional period, the same shares may temporarily appear pledged twice in depository records until the NDU is fully released.

Volatile Share Performance Since IPO

Ola Electric's stock has experienced significant volatility since its market debut in August 2024. The company listed at ₹76 per share, matching its IPO price, before surging 63% to an all-time high of ₹157.40 within weeks. However, the stock subsequently plunged 69% to touch ₹39.60 in July 2025 amid concerns over market share losses, sales data discrepancies, and quality issues. 

Recent months have shown recovery, with shares gaining 31% in August 2025 and climbing 55% over a month to reach ₹70 levels in early September. This rebound was driven by the company receiving Production Linked Incentive (PLI) certification for its Gen 3 scooter portfolio, which covers the majority of its current sales and could improve profitability from Q2 FY26. 

As of 10th September 2025, Ola Electric shares were trading at approximately ₹59.36, representing a market capitalisation of ₹26,134 crore but still trading 22% below the IPO price. The stock has delivered negative returns of -48.61% over the past year despite recent recovery momentum. 

Impact of Share Pledging on Market Sentiment

Share pledging typically has mixed implications for investor sentiment. While it allows promoters to raise capital without diluting equity, excessive pledging can signal financial stress and create negative market perception. In Ola Electric's case, the pledge represents a relatively modest 8.09% of promoter holdings, suggesting it is being used for strategic expansion rather than financial distress.

The current pledging level remains within acceptable limits, particularly as it supports the company's AI infrastructure expansion through Krutrim. However, investors will monitor whether additional pledging occurs if Krutrim requires further funding for its ambitious data centre expansion plans.

Krutrim's Challenging Journey

Krutrim, founded by Ola's Bhavish Aggarwal, became India's fastest unicorn in January 2024 after raising $50 million at a $1 billion valuation from Matrix Partners and other investors. The AI startup focuses on building indigenous AI computing infrastructure, including large language models supporting multiple Indian languages. 

However, Krutrim has faced significant operational challenges in 2025. The company has conducted multiple layoff rounds, eliminating over 200 employees including more than 100 linguistics specialists in July and another 50 employees in September. These cuts occurred despite the company's ambitious plans to invest ₹2,000 crore in AI development and expand to ₹10,000 crore by 2026. 

The startup has struggled to generate revenue, reporting no operational income in its inaugural financial year while spending ₹134.86 crore on research and development. Krutrim launched its AI assistant 'Kruti' in June 2025, recording 270,000 downloads, but progress has been slower than anticipated. 

Despite challenges, Krutrim continues expanding its cloud infrastructure, recently partnering with Cloudera to enhance data lake operations and announcing plans for 1-gigawatt data centre capacity by 2028. The company has launched facilities in Bengaluru and Hyderabad while developing indigenous AI chips through its Bodhi, Sarv, and Ojas product families. 

The share pledge ensures Krutrim can continue its infrastructure expansion as it works towards profitability and broader market adoption of its India-focused AI solutions.