Hyundai, Kia offload ₹690 crore stake in Ola Electric amid losses, falling revenue
Mumbai: Hyundai Motor and Kia Corporation sold shares worth nearly ₹690 crore in electric two-wheeler manufacturer Ola Electric through open market transactions on Tuesday, according to data released by the National Stock Exchange.
Hyundai sold 108 million shares at ₹50.70 each, amounting to ₹551.9 crore, while Kia offloaded 27 million shares at ₹50.55 apiece for ₹137.3 crore, The Economic Times reported, citing the NSE data.
In the same session, Citigroup Global Markets Mauritius acquired Ola Electric shares worth ₹435.4 crore.
Shares of Ola Electric fell 8% on Tuesday, closing at ₹49.33 on the NSE, reflecting investor concerns over the company’s recent performance and broader challenges in the electric vehicle segment.
The Bengaluru-based firm has been grappling with a series of setbacks.
In the fourth quarter of the last financial year, Ola Electric’s net loss more than doubled to ₹870 crore from ₹416 crore a year earlier.
Operating revenue plunged by nearly 62% to ₹611 crore, as sales of its electric scooters slumped significantly.
Adding to its financial pressures, the company has been facing declining market share, increased regulatory scrutiny, and a prolonged dip in its stock price.
Earlier this month, Ola Electric’s board approved a plan to raise up to ₹1,700 crore through non-convertible debentures and other debt instruments.
This will mark the company’s first major fundraising effort since its IPO in August 2024.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
