Bhavish Aggarwal pledges Ola Electric shares as the company plans a ₹1,000 crore rights issue

Bhavish Aggarwal, founder of Ola Electric and Krutrim Data Centre, has pledged 20 crore Ola Electric shares to secure debentures issued by Krutrim.

The pledge, made on 30 September, covers 4.32% of Ola Electric and is larger than a previous pledge that Aggarwal cleared by selling some of his shares.

Ola says he is using the pledge to fund his subscription to the company’s planned ₹1,000 crore rights issue, and that he will invest on the same terms as other shareholders.

A rights issue lets existing shareholders buy new shares, and Ola’s issue will be partly paid, with the price and payment schedule still to be announced.

The company says about ₹350 crore of the funds will go towards borrowings and ₹400 crore towards growth.

Ola raised ₹780 crore in June, but its cash flow remained negative in the first quarter of FY27, and the company reported revenue below its guidance.

Investors may view the repeated pledging, selling and pledging of shares as a sign of financial pressure, while the rights issue is intended to provide the company with more funds.