Hyundai Exits Ola Electric with ₹552 Crore Stake Sale; Kia Sells Shares Worth ₹137 Crore
Mumbai, India: In a major move signaling a strategic shift, Hyundai Motor Company has sold its entire 2.5% stake in Ola Electric Mobility for a whopping ₹552 crore. The transaction was executed on Tuesday, marking Hyundai’s complete exit from the electric two-wheeler startup that has been one of the most talked-about players in India’s growing EV landscape.
According to data disclosed by the National Stock Exchange (NSE), this stake sale was part of a larger reshuffling of Ola Electric’s cap table, as the company prepares for its much-anticipated IPO.
But Hyundai wasn’t the only one offloading shares.
Kia Corporation, a sister company under the Hyundai Motor Group umbrella, also liquidated a significant portion of its holdings in Ola Electric. Kia sold around 2.7 crore shares, amounting to a transaction value of approximately ₹137 crore. This suggests that both Hyundai and Kia may be realigning their investment priorities within the EV ecosystem, possibly focusing on their in-house electric mobility ambitions.
Background of the Investment
Hyundai and Kia first invested in Ola Electric in 2019 as part of a strategic partnership aimed at developing India-centric electric mobility solutions. The collaboration also involved plans to co-develop electric vehicles and infrastructure tailored to Indian conditions.
However, over the past year, Hyundai and Kia have accelerated their independent EV strategies in India. Hyundai recently unveiled plans for launching several new electric models and expanding its charging infrastructure across key cities, while Kia is advancing its EV roadmap with dedicated platforms and local assembly strategies.
IPO Preparation by Ola Electric
This development comes at a time when Ola Electric is gearing up for its initial public offering (IPO), expected to be one of the biggest in the Indian EV sector. The startup, founded by Bhavish Aggarwal, is reportedly in the final stages of filing its draft red herring prospectus (DRHP) and has been restructuring its cap table to bring in more institutional investors.
Industry experts suggest that existing investors, especially strategic ones like Hyundai and Kia, may be exiting to make room for financial institutions or to unlock gains ahead of the IPO.
What This Means for India’s EV Sector
Hyundai and Kia’s exit from Ola Electric does not necessarily reflect a lack of confidence in the Indian EV market, which continues to witness exponential growth. Rather, it is seen as a tactical decision to redeploy capital and focus on their respective in-house EV launches. Both companies remain committed to India and have recently announced fresh investments in the country’s clean mobility sector.
For Ola Electric, this marks a critical juncture. The company has been expanding its product line, launching multiple models like the S1 Pro and S1 Air, while also investing in localized battery manufacturing and R&D.
As the IPO approaches, all eyes will be on how Ola Electric leverages this capital reshuffle to solidify its position in India’s booming EV ecosystem.
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