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Published on
June 4, 2025
5 min read
Hyundai Exits Ola Electric Amid Share Slump and Operational Hurdles
Hyundai has exited Ola Electric after selling its 2.47 percent stake in the company for ₹552 crore through an open market transaction, as per The Mint. According to bulk deal data on the NSE, Hyundai Motor Company sold over 10.88 crore shares, which amounts to a 2.47% stake in Ola Electric Mobility. The shares were sold at an average price of ₹50.70 each, bringing the total transaction value to ₹551.96 crore.
In a separate deal, Kia Corporation, which is part of the global Hyundai-Kia Automotive Group, also sold more than 2.71 crore shares, equal to a 0.62% stake in Ola Electric. Kia’s shares were sold at an average price of ₹50.55 per share, making the transaction worth around ₹137.35 crore.
Ola Electric Share Sale Attracts Global Investors
The Ola Electric share sale took place via the block deal route, where several institutional investors purchased the shares. According to reports, Citigroup’s Ola Electric investment was one of the key highlights, as the company is said to have been among the major buyers in this transaction. The bulk deal was executed at a valuation in line with recent secondary trades, reflecting strong investor confidence.
Hyundai and Kia had initially invested in Ola Electric as strategic partners. Their exit comes after nearly four years of holding a minority stake. While the companies have not publicly stated the reason for the exit, analysts suggest that Hyundai and Kia might be refocusing their EV strategies independently of Ola Electric’s direction.
Citigroup Steps In as Hyundai and Kia Step Out
As Hyundai exits Ola Electric, the entry of global financial institutions like Citigroup hints at a shift in the investor mix ahead of Ola Electric’s public listing. The timing of this stake sale is also interesting, as the EV startup gears up for its IPO.
The share sale comes at a challenging time for the Bhavish Aggarwal-led Ola Electric, which is dealing with operational delays, low demand, and increasing competition. On Tuesday, Ola’s shares dropped by 8.1%, marking their biggest single day fall in seven months. With this drop, the stock has now fallen 42% so far this year, after its strong debut in August.
The company is also facing regulatory pressure, including questions around how it counts vehicle bookings, along with raids and vehicle seizures by local transport authorities due to compliance issues. On the NSE, Ola Electric Mobility’s stock closed 7.58% lower at ₹49.61 per share.
Despite Hyundai’s exit, Ola Electric continues to receive strong backing from other existing and new investors. The company’s valuation remains robust, reportedly hovering around $5 billion. The presence of international financial players adds a layer of credibility as Ola Electric prepares for scrutiny in public markets.
Impact on Ola Electric Stock Performance Ahead of IPO
Though Ola Electric is not yet listed, the stake sale is being closely watched by market participants who are tracking the startup stock performance in the grey market. Some experts believe that Hyundai and Kia’s exit might create short-term sentiment shifts, but it is unlikely to affect the long-term prospects of the EV maker.
The fact that large investors are willing to pick up the shares sold by Hyundai and Kia shows there is still strong faith in Ola’s business model and future growth. With new launches, increasing EV adoption, and a growing focus on battery innovation, Ola Electric is expected to play a big role in India’s clean mobility shift.
