Olectra Greentech shares keep falling: What should investors know following clarification

Olectra Greentech shares just took a nosedive—seriously, over 13% gone in what felt like a blink. Why? Well, word on the street (okay, in the financial news) is that Maharashtra’s government supposedly canned a massive ₹10,000 crore electric bus contract. We’re talking about 5,150 buses here, not just a handful. The deal was handed to a group with Olectra Greentech and EVEY Trans Private Limited in the mix.

So, what’s the real kicker? Maharashtra’s Transport Minister, Pratap Sarnaik, straight-up said the whole thing got trashed because the Olectra-EVEY squad didn’t roll out even a single bus by the May 22 deadline. Ouch. As you’d expect, investors freaked out—no one wants to be left holding the bag if the company can’t deliver the goods, right?

Now, Olectra tried to put out the fire. They dropped a statement saying, “Hang on, nothing’s official yet!” Basically, they claim the contract’s still alive and kicking, and nobody on their end got any formal cancellation letter. There’s this Special Purpose Vehicle (fancy term for a project-specific company) running the show—EVEY owns 99%, Olectra’s got the other 1%. According to them, the Maharashtra State Road Transport Corporation (MSRTC) hasn’t sent a breakup text yet.

But, honestly, the damage is done. The stock’s still bleeding. This whole mess just screams how messy and unpredictable these giant government contracts can be—especially when you’re burning cash in a sector like electric mobility. If you’re an investor? Yeah, you’re probably chewing your nails waiting for MSRTC or the state government to clear things up. Until then, maybe don’t bet the house. Whether Olectra can pull itself together, actually deliver some buses, and be straight with everyone—that’s what’s gonna decide if anyone trusts them again.