Hyundai Motor and Kia Corporation have sold their entire stake in Ola Electric, exiting the company for a total of Rs. 690 crore in block deals, a move that suggests they are reducing their commitment to electric vehicle investment in India.
- Hyundai and Kia exit Ola Electric, selling stakes worth Rs. 690 crore in block deals.
- Ola Electric reports Rs. 2,276 crore net loss in FY25 as revenue drops 50 percent YoY.
- Citigroup acquires 1.95 percent stake in Ola Electric, while 63 percent of shares go to unknown investors.
Hyundai got rid of its 2.47 percent share, worth Rs. 552 crore and Kia sold its 0.62 percent stake for Rs. 137 crore.
Five years after the joint investment of $300 million by the two groups in Ola Electric in 2019, the exit is made.
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Citigroup Global Markets Mauritius played a main role in the deal, picking up around 1.95 percent of the firm (8.61 crore shares) for Rs. 435 crore. Mystery surrounds the people who also purchased the items.
The stake sale occurred after Ola Electric had a weak financial quarter in the previous fiscal year. The company’s consolidated net loss for Q4 was Rs. 862 crore which is higher than the Rs. 418 crore loss reported in Q4 FY24. Last year, operating revenue was Rs. 1,100 crore but this year it fell to Rs. 611 crore which is almost 50 percent lower Y-o-Y. Compared to the previous fiscal year, net loss in FY25 became Rs. 2,276 crore as opposed to Rs. 1,584 crore.
Ola Electric’s share price fell 8 percent to Rs. 49.61 on Wednesday which led its market capitalization to decrease to Rs 21,882 crore ( $2.57 billion).
After Hyundai and Kia withdraw, the number of Ola’s major partners is reduced, but Citi shows that some investors are still interested. Because it is experiencing losses, most people ask if the company will turn profitable by FY26. An impressive 63 percent of the equity sold by Hyundai and Kia went to investors whose names have not been disclosed.
