Hyundai Motor likely sells 3.23% stake worth Rs 731 crore through block deal, triggering share decline and volume surge
03 Jun 2025 | 1422 Views | By Angitha Suresh
Ola Electric Mobility shares fell more than 7% on June 3 after a block deal worth Rs 731 crore was executed in early trading. The transaction involved 14.22 crore shares, representing a 3.23% stake in the electric vehicle manufacturer.
Market sources suggest Hyundai Motor Company was the likely seller ...
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Ola Electric Mobility shares fell more than 7% on June 3 after a block deal worth Rs 731 crore was executed in early trading. The transaction involved 14.22 crore shares, representing a 3.23% stake in the electric vehicle manufacturer.
Market sources suggest Hyundai Motor Company was the likely seller in the transaction, which led to a sharp spike in trading volumes on Ola Electric's counter. The stock opened at Rs 52.00 and touched a low of Rs 50.32, with total volume exceeding 17.26 crore shares by mid-morning.
The decline adds to Ola Electric's challenging year, with shares losing more than 41% of their value since January. The stock is now trading at less than one-third of its record high of Rs 157.40.
The block deal comes amid ongoing pressure on Ola Electric following disappointing quarterly results. The company's net losses doubled to Rs 870 crore in the March quarter, while revenue dropped 62% year-on-year. Vehicle registrations also declined sharply, falling over 52% to 56,760 units in the March quarter.
Hyundai Motor Company became an investor in Ola Electric as part of the company's initial public offering process in August 2024, holding approximately 2.95% stake valued at around $99 million. Ola Electric raised Rs 5,500 crore through its IPO, which also included an offer for sale by existing investors.
Founded in 2017 by Bhavish Aggarwal, Ola Electric has established itself as a leading player in India's electric two-wheeler market, with a 30% market share as of 2023. The company operates a 500-acre automated manufacturing facility called the Ola Future Factory in Tamil Nadu.
Despite recent challenges, Ola Electric maintains its position as the largest E-scooter manufacturing company in India, with 31% market share in the E2W sector. The company has also announced plans to launch electric motorcycles in 2025 under its Roadster series.
The block deal transaction reflects broader market dynamics in the electric vehicle sector, where investor sentiment has been affected by concerns over growth sustainability and profitability timelines for EV manufacturers.