Ola Electric’s Board Approves ₹1,000 Cr Rights Issue

Ola Electric's board of directors approved a rights issue of up to ₹1,000 crore partly paid-up equity shares for eligible shareholders. The board will determine the specifics of the rights issue, such as the price, entitlement ratio, record date, and timing. This move follows the company's decision to raise fresh funding of up to ₹1,500 crore, previously announced on September 23.

Ola Electric chose the rights issue to allow participation from all eligible shareholders, including retail, institutional, and promoter groups, as per applicable laws. The company's second major fundraise this year comes after a ₹780.24 crore qualified institutional placement (QIP) in June. Plans for the proceeds include repaying or prepaying certain borrowings and supporting organic growth initiatives.

Ola Electric is now investing heavily in EV, battery cell manufacturing, and battery energy storage system businesses, with a focus on these latter two areas for long-term growth. The mass market S1Z range, launched recently, started at ₹79,999, and the company's market share increased to 7.6% in August from 6.8% in July, with a slight decline in units sold.

Ola Electric's net loss narrowed 22% year-over-year to ₹336 crore in Q1 FY27, while operating revenue fell 45% to ₹455 crore.