Ola Electric Sets Rs 27 Rights Issue Price to Raise Rs 1,000 Crore

Ola Electric has revealed plans for a rights issue priced at Rs 27 per share, which is approximately 26 percent below the current market value. The company aims to collect up to Rs 1,000 crore through this fundraising initiative. Shareholders will be required to pay the amount in two stages, with 60 percent due at the time of application and the remaining balance payable later.

The board approved this rights issue on Wednesday, emphasizing the discounted price as an opportunity for existing investors to increase their holdings at a reduced rate. The two-call payment structure is intended to provide shareholders with ample time to fulfill their payment obligations. This approach also signals that Ola Electric does not require the entire amount immediately, allowing for a more flexible cash flow management.

This fundraising effort builds on earlier approvals and capital-raising activities. The company’s board initially sanctioned the rights issue on September 28, coinciding with the filing of its draft letter of offer. Previously, Ola Electric received authorization to raise up to Rs 1,500 crore, out of which Rs 780 crore was successfully raised through a Qualified Institutional Placement (QIP) in June 2026.

Bhavish Aggarwal, Chairman and Managing Director of Ola Electric, is expected to subscribe fully to his entitlement in the rights issue. According to sources familiar with the transaction, Aggarwal has pledged a 4.32 percent stake in the company to finance his subscription without selling any shares. The promoter group collectively holds about 32.97 percent of Ola Electric’s shares.

The proceeds from the rights issue are anticipated to help the company reduce its debt burden and steer it toward cash breakeven, potentially avoiding the need for additional funding in the near term. A banking insider monitoring the situation informed PTI that this capital infusion would strengthen Ola Electric’s financial position significantly.

Further details, including the record date for shareholders eligible to participate in the rights issue, will be disclosed in compliance with regulatory requirements.

Ola Electric operates in the electric vehicle (EV) sector, which has been gaining momentum as governments and consumers increasingly focus on sustainable transportation solutions. Fundraising activities such as rights issues are common for companies in the EV space to support research and development, expand production capacity, and improve infrastructure.

This rights issue is a strategic move for Ola Electric to bolster its financial health while offering existing shareholders a chance to increase their stake at a discounted price. The company’s approach to stagger payments through two calls alleviates immediate financial pressure on investors and signals confidence in managing upcoming cash needs prudently.

Overall, the rights issue reflects Ola Electric’s ongoing efforts to strengthen its balance sheet amid a competitive and rapidly evolving electric mobility market.