After a strong rally of over 50 per cent in the month of April, shares of Ola Electric tumbled over 7 per cent on Monday, April 13, 2206. The correction in the stock comes despite some positive news for electric vehicle manufacturers following Delhi's draft EV policy. The stock opened gap down with a fall of 3.4 per cent at Rs 39.51 against the previous close of Rs 40.90 on the BSE. Amid profit booking, the stock dipped further to touch a low of 39.75, representing a 7.09 per cent dip from the previous close. Last seen, the stock was trading at Rs 38.32 with a drop of Rs 2.58 or 6.31 per cent. The market cap of the company stood at Rs 16,902.30 crore. The dip in the stock comes amid profit booking, as the stock has gained over 50 per cent in April so far.
Meanwhile, the BSE has placed the stock under the Short Term Additional Surveillance Measure Stage 1 (ST ASM-1) framework.
Delhi's Draft EV Policy
The profit booking in stock comes even as there is some good news of electric vehicle manufacturers in the draft policy. Under the draft EV policy released by the city government, residents will get up to Rs 1 lakh as scrapping incentive on purchasing a new electric car in exchange for scrapping their old BS-IV and below vehicles. Also, people buying electric two-wheelers in Delhi may get a subsidy of up to Rs 30,000 in the first year from the date of notification of the policy.
As per the draft policy, for electric auto-rickshaws, the policy proposes a fixed incentive starting at Rs 50,000 in the first year, and two-wheeler buyers may get up to Rs 30,000.
According to the draft policy, eligible two-wheeler buyers will get Rs 10,000 per kWh, capped at Rs 30,000 in the first year, Rs 6,600 per kWh up to Rs 20,000 in the second year, and Rs 3,300 per kWh up to Rs 10,000 in the third year.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
