SoftBank has reduced its stake in Ola Electric Mobility Ltd by 2.15% through a series of open-market transactions, marking yet another divestment by the global technology investor in the electric vehicle (EV) maker. The sale was carried out by SVF II Ostrich (DE) LLC, SoftBank’s investment vehicle, and involved nearly 9.5 crore equity shares sold over a four-month period between September 3, 2025, and January 5, 2026.
The transaction triggered mandatory disclosures under takeover regulations, as the stake sale breached the prescribed threshold that requires public reporting. The move has drawn market attention at a time when Ola Electric’s stock is under pressure and investor sentiment around EV companies remains cautious. This article delves into SoftBank’s gradual stake reduction in Ola Electric, the market reaction to the move, and the company’s current standing in a highly competitive EV landscape.
Credits: NewsBytes
How SoftBank’s Shareholding Has Changed
Before the latest divestment, SoftBank-owned SVF II Ostrich held 69.16 crore shares in Ola Electric, representing a 15.68% stake in the company’s total equity share capital. Following the sale, its holding has declined to 59.7 crore shares, translating into a reduced stake of 13.53%.
This is not the first time SoftBank has trimmed its exposure to Ola Electric. In the previous year, the investor had sold around 9.5 crore shares between July and September, bringing down its stake from 17.83% to 15.68%. With the latest transaction, SoftBank’s cumulative stake reduction over the past year signals a gradual exit strategy rather than a single large offloading event.
While SoftBank remains a significant shareholder, the consistent reduction has raised questions in the market about its long-term outlook on the EV maker.
Market Sentiment Weighs on Ola Electric Stock
Ola Electric is currently navigating a challenging phase in the public markets. Its shares are trading close to record lows, reflecting weak broader market sentiment as well as company-specific pressures. Stake sales by large investors have added to the overhang, amplifying concerns around confidence in the near-term prospects of the company.
For public investors, such stake reductions are often closely watched, as they can be interpreted—rightly or wrongly—as signals about internal expectations of growth or valuation. In Ola Electric’s case, the repeated divestments have coincided with a period of subdued stock performance, making sentiment even more fragile.
However, it is worth noting that large institutional investors frequently rebalance portfolios for multiple reasons, including liquidity needs or fund-level strategies, rather than company fundamentals alone.
December EV Sales Show Stability, Not Dominance
Operationally, Ola Electric’s sales performance has shown signs of stability, though competition in the Indian EV market remains intense. In December 2025, the company sold approximately 8,402 electric vehicles, broadly maintaining its monthly sales levels.
During the same period, Ola Electric’s market share improved by 2% to reach 9.03%, positioning it as the fifth-largest EV player in India. While the gain indicates some traction, the numbers also highlight the growing gap with stronger rivals.
Ather Energy, one of Ola Electric’s key competitors, sold nearly double the number of vehicles in December and commanded a significantly higher market share of 17.62%. The contrast underscores the competitive pressure Ola Electric faces in defending and expanding its position.
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Credits: Entrackr
The Road Ahead Amid Investor and Competitive Pressure
The combination of sustained stake sales by SoftBank, a depressed stock price, and stiff competition places Ola Electric at a critical juncture. While the company has managed to hold sales steady and marginally improve market share, the broader narrative is being shaped by investor actions and market sentiment.
As the Indian EV space continues to evolve rapidly, Ola Electric’s ability to regain investor confidence will likely depend on consistent sales growth, sharper competitive execution, and improved visibility on long-term profitability. Until then, the spotlight will remain firmly on both its performance on the road and the moves of its largest backers.
