Ola Electric to Raise ₹1,000 Cr Through Rights Issue
Electric vehicle manufacturer Ola Electric will open a rights issue on October 22 to raise approximately ₹999.74 crore. The issue price is set at ₹27 per share, a discount to its current market price.
Ola Electric, an electric vehicle manufacturer, announced that its ₹1,000 crore rights issue will open for subscription on October 22 and close on October 30. The company has set the issue price at ₹27 per share, which represents a discount of over 5% compared to its recent closing price.
The rights issue will consist of 37.03 crore partly paid-up equity shares. Shareholders as of the record date, October 13, will be entitled to subscribe to two new shares for every 25 fully paid-up shares they hold. The company anticipates raising the full amount, assuming all shares are subscribed and paid for.
Proceeds from the issue are earmarked for debt reduction, business expansion, and general corporate purposes. Approximately ₹350 crore will be allocated to repaying borrowings, while ₹400 crore will be invested in the company's electric mobility and energy storage businesses. The remaining funds will be used for general corporate needs.
This offering follows a ₹780.24 crore qualified institutional placement (QIP) completed by Ola Electric in June. In its latest financial results, the company reported a decrease in net loss for the first quarter to ₹336 crore from ₹428 crore in the same period last year, though operating revenue declined 45% to ₹455 crore.