Shares of Ola Electric Mobility came under intense selling pressure, plunging over 7% on June 3 after Hyundai Motor Company likely sold off stake worth ₹731 crore through a block deal.
As many as 14.22 crore shares of the electric vehicle manufacturer, making up a 3.23% stake in the company, changed hands in the block deal window. The transaction was executed at an average of ₹51.4 per share, implying an over 4% discount from the last closing price.
While buyers and sellers involved in the transaction could not be immediately ascertained, a report by CNBC-TV18, citing sources, stated that Hyundai Motor Company was among the likely sellers in the deal. As per Ola Electric’s latest March quarter shareholding data, Hyundai Motor Company owned a 2.47% stake in the company.
Nonetheless, the block deal also triggered a sharp surge in trading volumes in the counter. As many as 20 crore shares of Ola Electric Mobility changed hands by the first half an hour of trade, already reflecting a meteoric spike as compared to the one-month daily traded average of three crore shares.
Also, with the slump in today’s session, shares of Ola Electric have lost more than 41% of its total value since the start of the year. The stock is also trading at less than one-third of its record high of ₹157.40. At 09.47 am, shares of Ola Electric Mobility were quoting ₹50.30 on the NSE.
The stock has also faced the wrath of selling in recent times, which was intensified after the company released its Q4 numbers. The company’s net losses doubled on year to ₹870 crore in the March quarter, accompanied by a 62% plunge in its revenue, year-on-year.
Ola Electric Mobility recently reported its March quarter results, where its net loss widened from last year, while its revenue dropped by 62% on a year-on-year basis.
The company saw a sharp slowdown in the March quarter, with vehicle registrations plunging over 52% year-on-year to 56,760 units. Deliveries nearly halved to 51,375 units in Q4 FY25, implying a tough operating environment. The company’s operational performance also took a hit as its Ebitda margin worsened dramatically to -101.4%, compared to -16.4% in the same quarter last year.
Despite the setback, Ola Electric remains optimistic. The company expects deliveries to bounce back to 65,000 units by the end of the current quarter (Q1 FY26). It also anticipates a sharp recovery in its Ebitda margin, projecting an improvement to -25%, a turnaround from the previous quarter’s steep losses.
