Hyundai Motor, Kia offload Rs 690 cr worth of shares in EV maker Ola Electric

South Korean auto giant Hyundai Motor sold its entire stake in ola Electric, exiting the company. It sold over 10.8 crore shares for around Rs 552 crore through an open market deal, at an average price of Rs 50.7 per share, as per NSE data.

Hyundai had first invested in the Bengaluru-based EV startup in 2019.

Additionally, Kia Corporation, another South Korean automaker, sold about 2.71 crore shares of Ola Electric on the same day through an open market transaction. The shares were sold at an average price of Rs 50.55 each, totaling Rs 137.3 crore.

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Amid these transactions, Citigroup Global Markets acquired 8.6 crore shares of Ola Electric at Rs 50.55 each. The company’s stock, led by Bhavish Aggarwal, closed at Rs 49.33 on Tuesday, but recovered slightly to open at Rs 53 on Wednesday on the BSE.

These transactions come just a week after Ola Electric reported a sharp rise in losses, which doubled to Rs 870 crore for the quarter ending March 31, compared to Rs 416 crore in the same period last year. 

The company’s operating revenue also dropped 62% to Rs 611 crore from Rs 1,598 crore, as demand for its electric two-wheelers declined due to rising competition from established players like TVS Motor and Bajaj Auto.

 In May, Ola Electric’s market share nearly halved, with sales falling to 18,500 units from 37,388 units a year earlier.

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