The Ola company logo is seen on one of its electric scooters, ahead of the company’s IPO launch in Mumbai, India, July 29, 2024. REUTERS
June 4 (Reuters) – Hyundai Motor (005380.KS), sold its entire stake in Ola Electric (OLAE.NS), while rival South Korean carmaker Kia (000270.KS), trimmed its holding, in a combined share sale worth 6.89 billion rupees ($80 million), according to exchange data.
Hyundai, which held a 2.47% stake in the company, sold shares at 50.70 rupees, while Kia offloaded 0.6% of Ola Electric shares for 50.55 rupees, the data showed on Tuesday.
Kia held a less than 1% stake in Ola Electric. Its current holding is not known as the exchange data does not disclose stakes below 1%.
Ola Electric’s shares slumped 8% on Tuesday as both disposals were at a nearly 6% 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% 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.
Reporting by Kashish Tandon in Bengaluru; Editing by Sonia Cheema