Ola Electric Board approves rights issue of up to ₹1,000 crore

Ola Electric's Board has approved a rights issue of up to ₹1,000 crore, according to a regulatory filing. The specifics, such as the record date, issue period, and price, will be determined later. Bhavish Aggarwal, the Chairman and Managing Director, has pledged to buy his rights entitlement, with renunciation limited to the promoter group or certain investors.

The promoter group already owns about 32.97% of the company. Bhavish Aggarwal's participation may be financed by leveraging part of his stake, signaling strong commitment to the company, according to sources. The rights route was selected to enable existing shareholders, including retail investors, to participate. Proceeds from the rights issue would primarily be used for debt repayment (Rs 350 crore) and organic growth (Rs 400 crore), with the remainder for general corporate purposes.

This move is anticipated to alleviate operating expenses and potentially achieve cash breakeven, eliminating reliance on external capital, as confirmed by a banking source.