Archive · 8 Oct 2026
Ola Electric Sets ₹27 Price for ₹1,000-Crore Rights Issue
Ola Electric plans to raise almost ₹1,000 crore by offering new shares to its current shareholders.
Each share costs ₹27, which is about 26% below the stock’s Wednesday closing price.
People who owned shares on October 13, 2026 can buy two new shares for every 25 they already own.
They pay ₹16.20 per share when applying and ₹10.80 later through a final call.
The issue is scheduled to run from October 22 to October 30.
Shareholders can buy their offered shares, transfer their rights or let them lapse, which could reduce their share of the company.
Ola plans to use some of the money to repay debt and some to support growth.
The stock fell nearly 10% intraday, while the articles also point to falling revenue and cash outflows as concerns.
Ola Electric will offer 37.03 crore partly paid-up shares at ₹27 each, raising up to ₹999.74 crore if fully subscribed.
Shareholders on the October 13, 2026 record date may subscribe for two shares for every 25 held.
Investors pay ₹16.20 per share on application and ₹10.80 in a first and final call; the board may revise the call schedule.
The issue is scheduled to open October 22 and close October 30, 2026; rights entitlements trade until October 26.
Proceeds are earmarked for debt repayment, growth initiatives and general corporate purposes; the stock fell nearly 10% intraday after the announcement.
- Who
- Ola Electric Mobility and its eligible shareholders; founder Bhavish Aggarwal pledged shares to fund his participation.
- What
- A rights issue of 37,02,72,665 partly paid-up shares at ₹27 each, targeting ₹999.74 crore if fully subscribed.
- When
- The record date is October 13, 2026; the issue is scheduled for October 22–30, 2026, with rights-entitlement trading until October 26.
- Where
- The issue is for eligible Ola Electric shareholders; the articles do not specify a physical location.
- Why
- To raise funds for debt repayment or prepayment, growth initiatives and general corporate purposes.
Reasons to participate
Risks and concerns
Shareholder choice and dilution
Reasons to participate
Eligible holders can subscribe to maintain their proportional ownership or sell their rights entitlements.
Risks and concerns
If holders let entitlements lapse, their ownership may be diluted; they must invest more money to maintain their stake.
Fundraising and business outlook
Reasons to participate
The company says the proceeds will support debt repayment and growth initiatives.
Risks and concerns
The article reports continued cash outflows, a 45% year-on-year revenue decline in the June quarter and shrinking market share, raising questions about whether new capital will restore growth.
Discount and market reaction
Reasons to participate
The ₹27 offer price is about 26% below the Wednesday closing price, giving eligible shareholders a lower subscription price.
Risks and concerns
The stock fell nearly 10% intraday; the article says the decline may reflect concerns about funding needs and business performance beyond the discount itself.
- Issue price
- ₹27 per share, including a ₹17 premium; about 26% below Wednesday’s ₹36.32 closing price.
- Issue size
- 37,02,72,665 partly paid-up shares; ₹999.74 crore if fully subscribed and all call monies are paid.
- Entitlement ratio
- Two rights shares for every 25 shares held on October 13, 2026.
- Payment schedule
- ₹16.20 per share on application and ₹10.80 through a first and final call; the call is expected by October 31, 2027, but the board may change the schedule.
- Key dates
- Record date: October 13, 2026; scheduled issue period: October 22–30; last rights-entitlement trading date: October 26.
- Planned use of proceeds
- About ₹350 crore for debt repayment or prepayment, ₹400 crore for organic growth, and the balance for general corporate purposes.
- Promoter pledge
- Bhavish Aggarwal pledged 20 crore shares, representing 4.32% of Ola Electric’s equity, to finance his subscription; the company said no shares were being sold.
- Market and business figures reported
- The stock fell 9.96% intraday to ₹32.70 before recovering to ₹34.63; June-quarter revenue was ₹455 crore and net loss was ₹336 crore.
