Ola Electric‘s share price band has been revised downwards by the exchanges.
What Happened: Ola Electric’s share price has been on a tear ever since it was listed on the bourses earlier this month. Since the listing, the stock has surged up around 74%. On Friday, the stock was locked in the 20% upper circuit to close at ₹133.08.
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However, the Ola Electric share price band has now been revised downward to 10%, which means that come Monday the stock can only move 10% in either direction. Stock exchanges adjust price bands as a surveillance measure to manage excessive volatility. The BSE’s circuit filter mechanism limits the daily price fluctuation for listed securities, setting upper and lower limits on price movements.
According to the Securities and Exchange Board of India (SEBI), most individual stocks have price bands of up to 20% on either side, except those with associated derivatives. These measures are designed to curb extreme price swings and maintain market stability.
Earlier in the week, HSBC initiated coverage on the stock with a “buy” rating and a target price of ₹140.
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