Ola Electric Mobility Block Deal: Hyundai Motor likely seller in ₹731 crore transaction

Shares of Ola Electric Mobility Ltd. fell as much as 7% on Tuesday, June 3, after a block deal worth ₹731 crore took place in the early minutes of the trading session.

According to data available, as many as 14.22 crore shares of the company changed hands in the block deal. The number of shares that changed hands amount to 3.23% of the total outstanding equity of Ola Electric Mobility.

Sources tell CNBC-TV18 that Hyundai Motor Company is likely to be the seller in this transaction.

Shares changed hands at an average price of ₹51.4 per share, which is at a discount to Monday's closing price.

As of the March quarter shareholding pattern, Hyundai Motor Company had a 2.47% stake in Ola Electric Mobility.

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.

However, the company has shared an optimistic guidance for the ongoing quarter, expecting revenue growth, as well as an expansion in its gross margins.

Brokerage firm Kotak Institutional Equities recently cut its price target on Ola Electric to ₹30 from ₹50 earlier, while downgrading the stock to "sell" from its earlier rating of "reduce". The brokerage expects Ola Electric to keep reporting losses on the Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) front.

Shares of Ola Electric Mobility are down 7% on Tuesday at ₹49.9. The stock trades well 34% below its IPO price of ₹76 and 69% below its post-listing high of ₹157.