Ola Electric Share Price Crashes 7% on Block Deal Buzz; Hyundai Likely Seller

Mumbai, June 3, 2025 – Shares of Ola Electric Mobility Ltd tumbled as much as 7% in Tuesday’s trading session amid heavy volumes, triggered by speculation of a significant block deal. Market sources indicate that South Korean auto giant Hyundai Motor Company may have offloaded a portion of its stake in the electric vehicle (EV) maker, creating selling pressure in the counter.

The sharp fall came despite a broader recovery in Indian equities, with both the Sensex and Nifty ending the day marginally higher. Ola Electric’s stock closed at ₹338.90, down 6.9%, on the NSE, with over 2.1 crore shares changing hands — nearly 10x its 30-day average volume.

Hyundai May Have Offloaded Stake

While the identities of the buyer and seller in the block deal remain unconfirmed as of publication, market chatter points toward Hyundai as the likely seller. The Korean automaker held a pre-IPO investment in Ola Electric and was expected to rebalance its India portfolio post-listing.

An investment banker familiar with the matter, speaking on condition of anonymity, said:

"Hyundai had been sitting on substantial paper gains post Ola Electric’s IPO. Given their own expanding EV plans in India, a strategic monetization of their stake wouldn't be surprising."

According to regulatory filings, Hyundai held around a 4.8% stake in Ola Electric pre-IPO. With the company currently valued at over ₹90,000 crore, even a partial exit could unlock hundreds of crores for the Korean firm.

High Volumes Signal Institutional Activity

Block deals are typically large transactions between institutional players executed at or near the market price. In Ola Electric’s case, the block was reportedly executed at a 5% discount to the last closing price, intensifying intraday volatility.

Data from the NSE showed a total of 2.1 crore shares traded in the first half-hour of the session, hinting at strong institutional participation on both the buy and sell sides.

"The elevated volumes and sharp fall suggest a large institution has exited, and the counterparty is likely a long-term fund or domestic mutual fund," said Ashwin Mehra, Senior Analyst at Axis Securities.
"Such exits are not uncommon for IPO-bound or recently listed firms, especially when early investors rotate capital."

Stock Has Seen Mixed Performance Since IPO

Ola Electric made a high-profile debut on the Indian bourses in January 2025, with its IPO priced at ₹285. It soared over 30% on listing day and touched a lifetime high of ₹412 in February. However, the stock has witnessed increased volatility in recent weeks, mirroring concerns about high valuations in the EV space.

Despite the correction, Ola Electric remains one of India’s most valuable new-age companies, and among the few listed pure-play EV firms.

“The company has strong brand recall and is making strides in local battery production and EV infrastructure,” said Ritika Dey, Portfolio Manager at Quantum AMC.
“But investors are rightly questioning the sustainability of growth in an increasingly competitive sector.”

Investor Outlook: Near-Term Volatility Likely

Analysts believe the stock may remain under pressure in the near term due to technical factors and ongoing supply overhang concerns.

"While the fundamentals are relatively sound, any further exits by pre-IPO investors or lock-in expiries could add selling pressure," warned Vinay Desai, Head of Equities at Elara Capital.
"Medium- to long-term investors should watch for quarterly delivery updates and progress on Ola’s gigafactory before making new allocations."

The company is yet to announce its Q4FY25 earnings, which will offer fresh insight into its financial health and delivery growth. Analysts are also watching for any updates on Ola's plans to expand into electric motorbikes and international markets.

What Should Investors Do?

For investors holding the stock, experts suggest a cautious approach. While the EV opportunity in India remains robust, Ola Electric faces multiple challenges, including increasing competition from legacy automakers, supply chain hurdles, and potential policy changes in subsidies.

“Short-term traders should expect elevated volatility and use strict stop losses,” advised Aditya Solanki, Technical Analyst at ICICI Direct.
“Long-term investors should assess fundamentals closely — margins, cash flows, and operational efficiency will be key to sustaining its premium valuation.”

Conclusion

Tuesday’s sudden price plunge in Ola Electric shares, likely triggered by a large block deal involving Hyundai, highlights the complexities of post-IPO stock dynamics. While the company holds long-term promise in India’s EV transition story, near-term caution is warranted amid shifting institutional interests and market recalibrations.

With Ola Electric gearing up for product expansion and policy support for EVs continuing, the long-term outlook remains cautiously optimistic — provided the company delivers consistent execution and navigates market volatility effectively.