Archive · 28 Sep 2026
Ola Electric Board Approves Rs 1,000 Crore Rights Issue
Ola Electric wants to raise up to Rs 1,000 crore from its existing shareholders.
This type of fundraising is called a rights issue.
The company has not yet decided the price or the exact timetable.
It previously raised Rs 780 crore through another method called a qualified institutional placement.
It is unclear whether promoter Bhavish Aggarwal and his group will buy shares in the new issue.
Ola Electric is facing weaker sales and has lost market share to competitors.
The company sold 10,991 electric scooters in September, giving it a 6% market share.
It plans to use its resources while expanding electric-vehicle and battery manufacturing.
The board also appointed Deepa Bansal as company secretary and compliance officer.
Ola Electric’s board approved raising up to Rs 1,000 crore through a rights issue for eligible equity shareholders.
The issue price, entitlement ratio, record date, timing and payment schedule have not yet been announced.
The company previously received approval to raise Rs 1,500 crore and collected Rs 780 crore through a June 2026 qualified institutional placement.
Ola Electric’s market share fell to 6% in September as sales reached 10,991 electric two-wheelers.
The company is also investing in electric-vehicle manufacturing, battery-cell production and battery energy storage operations.
- Who
- Ola Electric Mobility, led by promoter Bhavish Aggarwal, is seeking funds from eligible equity shareholders.
- What
- The board approved a rights issue to raise up to Rs 1,000 crore.
- When
- The approval was announced on Monday; Deepa Bansal’s appointment takes effect on September 28, while the issue timetable is yet to be disclosed.
- Where
- The announcement was made in an exchange filing; no specific location was stated.
- Why
- The fundraising comes as Ola Electric addresses weaker sales and expands electric-vehicle manufacturing, battery-cell production and battery energy storage operations.
Case for the Rights Issue
Investor Concerns
Shareholder participation
Case for the Rights Issue
Ola Electric said the rights-issue route could allow retail, institutional and promoter-group shareholders to participate, subject to applicable laws.
Investor Concerns
It remains unclear whether Bhavish Aggarwal and the promoter group will participate.
Use of funds
Case for the Rights Issue
The fundraising supports expansion in electric-vehicle manufacturing, battery-cell production and battery energy storage through the company’s planned businesses.
Investor Concerns
The company is seeking funds while dealing with weak sales and a declining market share despite record volumes in the electric two-wheeler industry.
Competitive position
Case for the Rights Issue
Ola Electric is continuing to scale its manufacturing operations, including increasing planned cell-production capacity to 6 GWh.
Investor Concerns
Its market share has fallen to 6%, while TVS Motor, Bajaj Auto and Ather Energy together account for around 65% of electric two-wheeler sales.
- Fundraising amount
- Up to Rs 1,000 crore through a rights issue
- Previous fundraising approval
- The company had earlier received approval to raise up to Rs 1,500 crore.
- Earlier amount raised
- Rs 780 crore was raised through a qualified institutional placement in June 2026.
- September sales
- 10,991 electric two-wheelers
- September market share
- 6%, down from the same month a year earlier
- Promoter-group stake
- Bhavish Aggarwal and the promoter group held a combined 32.97% stake as of June 2026.
- Cell-factory capacity target
- Capacity was expected to rise to 6 GWh by September from 2.5 GWh.