EV stock Ola Electric Mobility share price rose over 5% in intra-day deals on Friday, December 26, after the company informed exchanges that the government has sanctioned incentives worth 366.78 crore under the Production Linked Incentive (PLI)-Auto scheme for claims pertaining to FY25.
The stock climbed as much as 5.4% during the session to touch an intraday high of 37.28, reacting positively to the announcement made through an exchange filing on December 25, a day when domestic markets were closed for Christmas.
Ola Electric Stock performance
Despite Friday’s rally, Ola Electric shares remain well below their historical highs. The stock is still about 63% lower than its 52-week high of 99.90, which was recorded in December 2024. On the downside, the shares had hit a 52-week low of 30.79 earlier this month on December 18, highlighting the volatility that has marked the stock’s recent trajectory.
In the near term, the EV stock has shown some recovery. Ola Electric shares have jumped 10% over the past five trading sessions. However, the broader trend remains weak. The stock has fallen more than 10% over the past one month, declined 15% in the last six months, and is down a steep 61% over the past one year.
So far in 2025, Ola Electric shares are down nearly 58%, underlining the pressure the stock has faced despite intermittent positive triggers.
Government sanctions 366.78 crore under PLI-Auto
In its exchange filing, Ola Electric said the sanctioned amount relates to the demand incentive for determined sales value for FY25 under the PLI-Auto scheme. The company stated that it received the sanction order from the Ministry of Heavy Industries for the release of incentives through IFCI Limited, the designated financial institution responsible for disbursement under the scheme.
The company added that the incentive has been sanctioned strictly in line with the applicable terms and conditions of the PLI-Auto Scheme, as amended from time to time. Ola Electric said the development reinforces its position as a key contributor to India’s advanced automotive manufacturing ecosystem, reflecting strong execution across scale, localization and technology-led vertically integrated manufacturing.
Commenting on the development, an Ola Electric spokesperson said, “The sanction of 366.78 crore under the PLI-Auto Scheme is a strong endorsement of Ola Electric’s manufacturing capabilities and our commitment to building world-class EV technology in India.”
The spokesperson added that the incentive recognizes the company’s sustained efforts in scaling domestic production, deepening localization and driving innovation across the electric mobility value chain. “We remain committed to supporting the Government of India’s vision of making India a global hub for advanced automotive manufacturing and clean mobility,” the spokesperson said.
The PLI-Auto Scheme was approved by the Union Cabinet on September 15, 2021, with a total budgetary outlay of 25,938 crore for a five-year period from FY23 to FY27. The scheme aims to boost domestic manufacturing of Advanced Automotive Technology (AAT) products, including electric vehicles and their components, reduce import dependence, strengthen local supply chains and generate employment.
Other recent company developments
Separately, Ola Electric provided an update last week regarding its promoter shareholding. The company confirmed the completion of a one-time, limited monetization of a portion of the founder Bhavish Agarwal’s personal shareholding, which was undertaken to fully repay a promoter-level loan of around 260 crores.
Following this transaction, all 3.93% shares that were previously pledged have been released, bringing the promoter’s pledge in the company down to zero, the Bengaluru-based firm said. The company clarified that the monetization was executed entirely at the promoter’s personal level, carried out in tranches, and was time-bound.
Post the transaction, the promoter group continues to hold more than 34.5% stake in Ola Electric, among the highest promoter ownership levels seen across new-age listed companies. Ola Electric also emphasized that the exercise does not involve any dilution of promoter control and reflects no change in the founder’s long-term conviction in the company.
