Capital Allocation and Share Allotment
Electric vehicle manufacturer Ola Electric has concluded its fundraising effort, allotting 37.03 crore partly paid-up equity shares to investors. The company expects to raise approximately ₹999.7 crore through this rights issue once all payments are finalized. The rights issue committee approved the allotment following consultation with the National Stock Exchange.
Under the terms of the issue, shareholders paid an initial ₹16.2 per share, totaling ₹599.8 crore. The remaining ₹10.8 per share, which amounts to ₹399.9 crore, will be collected during a first and final call. The shares were priced at ₹27 each, a valuation that includes a ₹17 premium over the ₹10 face value.
The process began in October, with the company offering two rights shares for every 25 fully paid-up equity shares held as of the October 13 record date. Founder and chairman Bhavish Aggarwal signaled his commitment to the issuance by pledging a 4.32% stake in the company to fund his participation.
Strategic Use of Proceeds
Ola Electric plans to deploy the capital across several operational areas through the 2027 and 2028 fiscal years. The company has designated ₹350 crore to reduce debt at both the parent company and its material subsidiaries, a move that includes the settlement of accrued interest and prepayment penalties.
The largest portion of the funds, ₹400 crore, is earmarked for organic growth. This investment will target the company’s electric mobility and energy storage sectors, covering manufacturing expansion, research and development, and the growth of service infrastructure and retail dealerships. The remainder of the proceeds will support general corporate requirements.
This capital raise follows a separate ₹780.24 crore qualified institutional placement completed in June. The company recently reported a 22% reduction in its net loss for the first quarter of fiscal year 2027, bringing the figure to ₹336 crore from ₹428 crore in the same period last year.