Ola Electric Shares Slump 7% On Block Deal Buzz

Shares of Ola Electric slumped as much as 7.05% to INR 49.90 during early trading hours on the BSE today amid report of a block deal in the counter.

While BSE data did not show any bulk deal data, a CNBC TV 18 report attributed the drop to a large block deal involving shares worth INR 731 Cr that took place during the morning session.

The publication cited Hyundai Motor India as the likely seller in the block deal. As per the March shareholding data, Hyundai held a 2.47% stake in Ola Electric.

“Around 14.22 Cr shares exchanged hands at INR 51.4 per share. This implies a discount from the previous session’s closing price of INR 53.68 apiece,” the report said.

The report added that the traded shares accounted for 3.23% of Ola Electric’s total equity.

By 11:35 AM, the stock was still trading 6.57% lower at INR 50.16 on the BSE. At that time, the company’s market capitalisation stood at INR 22,124.72 Cr, with a trading volume of 22.2 Cr shares.

Last Friday, the stock following the release of Ola Electric’s weak Q4 FY25 financial results. The trade volume on Friday was much lower at less than 5 Cr.

The company’s net , driven by a sharp decline in revenue and a one-time warranty provision of INR 250 Cr. Revenue from operations during the quarter fell 62% YoY to INR 611 Cr.

The stock is just around 9% higher than its 52-week low of INR 45.55, recorded on April 7.

After being listed flat at INR 76 per share on both the NSE and BSE on August 9 2024, the stock more than doubled within two weeks. However, after this brief rally, it began to decline steadily, hitting an all-time low of INR 45.55 last month.

The company has consistently reported losses in its quarterly results, a trend that continued into Q4 FY25. Not just the bottom line, substantial decline in sales growth along with problems in operations, regulatory and reputational challenges, and missing key production targets for government subsidies have also contributed to the downward trajectory of its shares since last year.

Key Bulk Deals Under The Spotlight

The past month has witnessed a flurry of bulk deals, reflecting an improvement in market sentiment. Several new-age tech companies, including Eternal, Paytm, Nykaa and KFin Technologies, have seen significant investor activity through these large transactions.

For instance, French banking majorin a bulk deal valued at INR 1,488.71 Cr. At the same time, it offloaded 2,48,31,803 shares of beauty e-commerce platform Nykaa at INR 202.81 per share, amounting to a total transaction of INR 503.61 Cr.

Meanwhile, promoter General Atlantic Singapore via multiple block deals.

In another instance, for INR 2,103 Cr through bulk deals during the same period.

These high-value transactions could be driven by investors capitalising on recent stock rallies to book profits. Over the past month, several of the new-age stocks have seen steady upward momentum, in alignment with the broader Indian market.

On a year-to-date basis, the Sensex is up by 2.82% (at the current market price), while the Nifty 50 has gained 3.31%.

May’s relatively stable market environment can be attributed to improving economic indicators in the country, renewed interest from foreign institutional investors after months of outflows, easing global concerns around US tariffs and geopolitical stability with tension easing between India and Pakistan.

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