Ola Electric‘s share price tanked around 7% on Tuesday to hit an intraday low of ₹75.20. The stock has gone down over 17% in the last 30 days.

What Happened: The massive slump today comes as the 90-day lock-in period for anchor investors ended on November 5.

This means that around 18.18 crore shares, or 4% of Ola Electric’s outstanding shares, previously held by anchor investors, are now available for trading. However, the termination of the lock-in period doesn’t necessarily suggest that all these shares will be sold.

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The company’s IPO was launched on August 2, during which Ola Electric raised ₹6,145.56 crore from the primary market. Before the issue opening, the company secured ₹2,763 crore from anchor investors by allotting 36.35 crore shares at ₹76 per share, the upper price band for the IPO.

The end of the lock-in period can often lead to increased volatility in a company’s stock price, as seen in Ola Electric’s case. Despite the company’s recent success in improving its market share to 30% in October, the firm’s share price has been on a downward trajectory.

On October 29, the shares fell below the IPO price of ₹76 for the first time, marking a 50% drop from its all-time high in August.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.