Ola Electric to consider rights issue as it looks to raise fresh capital
The proposed fundraise, which will be subject to regulatory and statutory approvals, comes weeks after the company’s board okayed plans to raise up to Rs 1,500 crore through equity shares and other securities.
Ola Electric Mobility, the electric two-wheeler manufacturer, plans to explore a rights issue to raise capital, according to a regulatory filing on September 26. The board meeting to discuss the matter is scheduled for September 28. The proposed funds, which require regulatory and statutory approvals, will be used to bolster the company's financial standing. This potential rights issue follows the board's recent approval to raise up to Rs 1,500 crore through equity shares and other securities.
The company is considering the rights issue to involve all eligible shareholders, including retail, institutional, and promoter groups, in accordance with applicable laws. This move comes three months after Ola Electric raised Rs 780 crore via a Qualified Institutional Placement (QIP) in June. Initially, the company had targeted a Rs 500 crore raise through this route.
In recent news, Ola Electric's Chief Operations Officer, Hyun Shik Park, resigned from the company, citing personal reasons. Ola Electric has faced competition from rivals such as TVS Motor, Bajaj Auto, and Ather Energy, leading to a decline in its market position. Currently, the company holds the fifth spot in terms of monthly vehicle registrations.
To address its financial challenges, Ola Electric has been focusing on reviving sales and improving its performance. The company's revenue from operations in 2026 saw a significant drop of 50% year-on-year, plummeting from Rs 4,514 crore in FY25 to Rs 2,253 crore. Similarly, the consolidated net loss narrowed, but it still amounted to Rs 1,833 crore, a 19.5% decrease from the previous year's Rs 2,276 crore.
In Q1 of FY27, Ola Electric's operating revenues fell to Rs 455 crore, compared to Rs 828 crore in the same period last year. Vehicle registrations also decreased to 43,062 units, down from 54,676 units in the previous year. Despite these setbacks, Ola Electric sold 13,849 electric two-wheelers in August and maintained a 7.7% market share, a significant drop from the 17.7% market share in August 2025.
Written by urgent.news from Economic Times Tech's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
