(Bloomberg) -- Shares of India’s biggest e-scooter maker Ola Electric Mobility Ltd. fell below their initial public offering price, in a harsh reality check for one of the country’s most hyped listings of the year.
The stock dropped as much as 3.6% Tuesday to an intraday low of 74.82 rupees ($0.89), below the IPO price of 76 rupees. Ola’s shares, which almost doubled in value in the first six trading sessions since their listing in early August, have been under pressure in recent weeks as the company struggled with market share losses and rising consumer complaints.
Ola has lost over $3.7 billion in market value since its peak of $7.7 billion in mid-August. The fall from grace for Ola, along with last week’s lackluster debut by Hyundai Motor India Ltd. — India’s largest ever listing — may make some investors question the sustainability of the frenzy in the nation’s IPO market. India has been among the world’s busiest listing venues this year.
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Data released earlier this month showed Ola’s market share shrunk to about 27% in September, the lowest in 16 months. The company formed a new service team last month after media reports said a monthly run rate of 80,000 complaints had overwhelmed its service centers.
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