SoftBank Cuts Ola Electric Stake by 2.15% to 13.53%, Shares Dip on Investor Sell-Offs

Japanese investment giant SoftBank Group has once again trimmed its stake in Indian electric two‑wheeler maker Ola Electric Mobility Ltd. According to a regulatory filing, SoftBank’s investment arm, SVF II Ostrich (DE) LLC, sold a 2.15% portion of its holding in the company across a series of open market trades between 3 September 2025 and 5 January 2026. This has reduced its total stake from 15.68% to 13.53%.

This marks the second time in about six months that SoftBank has pared back its investment in Ola Electric. In a previous round of sales conducted between July and September 2025, the firm lowered its holding from 17.83% to 15.68%, also by selling 2.15 per cent of shares.

Impact on Ola Electric Shares and Market Reaction

The announcement had an immediate effect on Ola Electric’s stock price. Shares were seen trading lower on Friday, with a decline of about 2% as markets reacted to the news.

SoftBank’s repeated reductions come amid a wider trend of investor sell‑offs in the company. Other prominent backers, including global funds, have reduced exposure over the past year. Industry filings suggest that long‑time investors such as Tiger Global Management and Alpha Wave Ventures now hold less than 1 per cent each.

Why SoftBank’s Stake Sale in Ola Electric Matters

SoftBank remains one of the largest minority shareholders in Ola Electric, second only to founder Bhavish Aggarwal and his promoter group. However, the sustained trimming of holdings sends a signal to the broader market about investor confidence in the business.

The electric two‑wheeler maker has faced several challenges in recent months. Competitive pressure from rivals like TVS Motor Company, Bajaj Auto and Hero MotoCorp has intensified. According to recent market data, Ola Electric’s market share fell significantly in 2025 compared with the previous year, while its share price has been volatile.

In addition, there have been reports of operational and regulatory pressures, including increased scrutiny of customer service and delivery metrics, which have heightened investor caution.

Broader Shareholding Trends and Retail Participation

Despite the sell‑offs by institutional investors, retail participation in Ola Electric’s shares has risen. Recent filings show that the number of retail shareholders has climbed substantially over the past year, with their collective ownership increasing as larger investors exit.

The company had also seen some promoter selling late last year, with founder Bhavish Aggarwal selling personal shares to repay a promoter‑level loan, a move highlighted in exchange disclosures.

Looking Ahead

SoftBank’s continued reduction of its stake comes at a time when Ola Electric is trying to stabilise its operations and regain market momentum. How the company navigates competition and investor sentiment in the coming months will be closely watched by both the market and policy observers.