SoftBank Cuts Stake in Ola Electric to 15.7% After Major Share Sale; Stock Volatility Rises Since IPO

Japanese investment giant SoftBank, through its arm SVF II Ostrich (DE) LLC, has trimmed its stake in Ola Electric Mobility Ltd by selling about 94.9 million equity shares in open market transactions between July 15 and September 2, 2025. This move triggered a mandatory disclosure as SoftBank’s ownership dropped below the 2% threshold required by SEBI’s takeover regulations, bringing its holding from 17.83% down to 15.68%. The sale comes just nine months after Ola Electric’s high-profile IPO, making waves in India’s fast-evolving electric mobility sector. 

Impact on Ola Electric

SoftBank’s decision to pare its stake is part of a broader trend among early-stage and strategic investors, including Tiger Global and Hyundai, who have also reduced their exposures in Ola Electric recently. While this may fuel speculation about long-term confidence in Ola’s growth story, SoftBank remains the second-largest institutional shareholder after founder Bhavish Aggarwal. Importantly, Ola Electric has stayed in the headlines for positive reasons too, recently securing government approval under the Production Linked Incentive (PLI) scheme, which will support margins and cost efficiency. This scheme allows the company to receive incentives of 13-18% on eligible scooter sales, cushioning its financial pressures through 2028. 

Despite SoftBank’s stake reduction, Ola Electric continues to expand aggressively: it has ramped up its Gen 3 S1 scooter lineup, is pushing into electric motorcycles, and is scaling up its Gigafactory project in Tamil Nadu. However, recent quarterly numbers show challenges. Ola reported a wider net loss of ₹428 crore in Q1 FY26 and revenue declined 50% year-on-year, amidst rising competition and tempered consumer demand. Yet, operational cost reductions and PLI incentives hint at underlying resilience.

Ola Electric Share Performance Post IPO

Since its listing at ₹76 per share in August 2024, Ola Electric’s stock has experienced dramatic swings. The shares surged 63% within a month to hit ₹123.90, then tumbled 68% to a low of ₹39.60 in July 2025. In recent weeks, the stock staged a powerful rebound, rallying almost 77% from its July lows, touching ₹70 before settling near ₹65 after profit-booking. The company found favour with investors on the back of production-linked incentives and strong market momentum, despite a volatile journey. 

Trading volumes have been robust, with up to 75 crore shares changing hands in a single session, signalling active participation by traders and institutional investors. However, the 8% dip after SoftBank’s stake sale reveals continuing near-term volatility. Ola Electric reclaimed its number 2 spot in the EV two-wheeler market with nearly 19,000 unit sales in August 2025, though year-over-year sales slipped by 31% due to sector headwinds.