Ola Electric board approves Rs 1,000 crore rights issue
The board of Ola Electric has approved a rights issue of partly paid-up equity shares to raise up to Rs 1,000 crore, the electric two-wheeler maker said in a regulatory filing on Monday.
It comes weeks after the Bengaluru-based company approved plans to raise up to Rs 1,500 crore.
Partly paid-up equity shares are stocks for which the investor does not pay the full issue price upfront, and the company collects the remaining amount later on specified dates.
The issue will be offered to eligible shareholders as of a record date that will be announced later. Key terms of the issue, including the total number of shares, the issue price, the timing, and the payment terms, are yet to be finalised by the board.
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Ola Electric seeks to strengthen its balance sheet
Ola Electric has been looking to strengthen its balance sheet as it attempts to expand its electric two-wheeler business amid intensifying competition. TVS Motor, Bajaj Auto, Ather Energy, and Hero MotoCorp have steadily gained share, pushing Ola Electric to the fifth position in monthly registrations.
For the first quarter of the 2026-27 financial year, the company reported operational revenue of Rs 455 crore, down from Rs 828 crore a year earlier. Vehicle registrations declined to 43,062 units from 54,676 units during this period. Its net loss narrowed to Rs 336 crore from Rs 428 crore a year ago.
So far in September, Ola Electric has sold 10,991 electric two-wheelers, giving it a 6.1% market share, according to Vahan data. Its market share was 7.6% in August.
The latest fundraising comes just three months after Ola Electric raised Rs 780 crore through a qualified institutional placement (QIP) in June. The company had initially planned to raise Rs 500 crore through that issue. In June, its rival Ather Energy approved plans to raise up to Rs 2,500 crore through a mix of QIP and other equity-linked instruments.
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