Ola Electric Board Approves ₹1,000 Cr Rights Issue
Electric vehicle maker Ola Electric's board has approved a rights issue of partly paid-up equity shares totaling up to ₹1,000 crore. The move follows shortly after the company received board approval to raise up to ₹1,500 crore in fresh funding.
Ola Electric’s board of directors has cleared a rights issue of partly paid-up equity shares amounting to an aggregate of up to ₹1,000 crore (approximately $120 million USD). The board will soon decide on specific details such as the issue price and timing.
The announcement comes days after the electric vehicle maker’s board also approved raising up to ₹1,500 crore (approximately $180 million USD) in fresh funding. The company had previously stated that the rights issue route was chosen to enable participation by all eligible shareholders, including retail, institutional, and promoter groups.
The company is currently increasing investments in its electric vehicle, battery cell manufacturing, and battery energy storage system businesses. Ola Electric appears to be increasingly focusing on the latter two verticals for its long-term growth strategy.
In its core electric two-wheeler segment, Ola Electric recently launched its mass-market S1Z range. While its market share improved to 7.6% in August from 6.8% in July, unit sales declined by 7.7%. The company reported a narrowed net loss of ₹336 crore in Q1 FY27, but operating revenue fell 45% year-on-year.