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Hyundai And Kia Divest Stakes In Ola Electric Mobility For ₹689 Crore
Hyundai Motor Company and Kia Corporation have divested their stakes in Ola Electric Mobility. Hyundai sold its 2.47% stake, amounting to over 10.88 crore shares, for ₹552 crore through an open market transaction. Kia also offloaded a 0.62% stake, equivalent to over 2.71 crore shares, for ₹137.35 crore.
The shares sold by Hyundai were priced at an average of ₹50.70 each, while Kia's shares were disposed of at an average price of ₹50.55 per share. This move marks the exit of these South Korean automakers from the Bengaluru-based electric two-wheeler company.
Ola Electric's Financial Performance
Ola Electric reported a consolidated net loss of ₹870 crore for the quarter ending March 31, 2025. This is a significant increase from the ₹416 crore loss reported in the same quarter of the previous fiscal year. The company aims to achieve profitability in the current fiscal year. For FY25, Ola Electric's net loss widened to ₹2,276 crore compared to ₹1,584 crore in FY24. Revenue from operations also declined to ₹4,514 crore from ₹5,010 crore in the previous fiscal year.
Citigroup Global Markets Mauritius acquired over 8.61 crore shares of Ola Electric Mobility for ₹435 crore at an average price of ₹50.55 per share. However, details about other buyers remain undisclosed on the National Stock Exchange (NSE). The scrip of Ola Electric Mobility experienced a decline of 7.58%, closing at ₹49.61 per share on the NSE following these transactions.
Ola Electric's revenue from operations fell to ₹611 crore in the fourth quarter compared to ₹1,598 crore during the same period last year. Despite this downturn, the company remains focused on achieving profitability in the upcoming fiscal year. The automotive industry continues to evolve with advancements in electric vehicles and technology shaping its future landscape. This strategic exit by Hyundai and Kia reflects their shifting focus within the automotive sector as they explore new opportunities and partnerships globally.
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