Hyundai exits Ola Electric, Kia cuts stake in Rs 689 cr share sale

Hyundai, which held a 2.47% stake in the company, sold shares at a price of 50.70 rupees, while Kia offloaded 0.6 per cent of Ola Electric shares for 50.55 rupees, the data showed on Tuesday.

Hyundai Motor sold its entire stake in Ola Electric, while rival South Korean carmaker Kia trimmed its holding, in a combined share sale worth Rs 689 crore ($80 million), according to exchange data.

Hyundai, which held a 2.47 per cent stake in the company, sold shares at a price of 50.70 rupees, while Kia offloaded 0.6 per cent of Ola Electric shares for 50.55 rupees, the data showed on Tuesday.

Kia held a less than 1per cent stake in Ola Electric. Its current holding is not known as exchange data does not disclose stakes below 1 per cent.

Ola Electric's shares slumped 8 per cent on Tuesday as both disposals were at a nearly 6 per cent discount to its closing price on Monday.

Hyundai and Kia had invested $300 million in the Bhavish Aggarwal-led Ola in 2019 to collaborate on developing electric vehicles and their charging infrastructure.

The disposals come at a time when the company is grappling with slowing sales, regulatory pressure and competition from established two-wheeler makers. Its shares have dropped 46 per cent since going public in August 2024.

The Bengaluru-based company had reported a wider fourth-quarter loss and also forecast a revenue decline in the first quarter of the current fiscal amid steep discounts it has been offering to weather competition.