Ola Electric Board Approves Fresh ₹1,500 Cr Fundraise
EV maker Ola Electric's board has approved a new fundraising plan of up to ₹1,500 crore. This follows a ₹780 crore capital raise completed in June.
Ola Electric's board of directors has given the green light for a new fundraising round aiming to secure up to ₹1,500 crore. This decision comes approximately three months after the electric vehicle manufacturer completed a ₹780 crore Qualified Institutional Placement (QIP).
The company intends to raise the capital by issuing equity shares or securities convertible into equity. The fundraising may be pursued through various methods, including further public offerings, rights issues, private placements, or the issuance of instruments like convertible debentures and warrants. The proposal is subject to shareholder and regulatory approvals.
This latest funding effort coincides with Ola Electric's strategic investments in its electric vehicle, battery cell manufacturing, and energy storage businesses. The company is also focused on boosting sales and reducing its financial losses. Recently, Ola Electric launched the S1Z electric scooter, powered by its indigenously developed LFP Bharat Cell, and expanded its energy storage offerings.
Concurrently, Ola Electric is overhauling its sales strategy. The company opened its first dealer-operated stores and plans to establish a network of over 500 dealerships within the next two quarters. These moves are aimed at regaining market share in India's electric two-wheeler segment, where its registrations saw a month-on-month decline in August, although its market share improved as overall registrations fell more sharply.