Ola Electric Approves Rs 1,000 Crore Rights Issue

Khushi Jain
September 30, 2026

Electric two-wheeler maker Ola Electric has approved a plan to raise up to Rs 1,000 crore through a rights issue of partly paid-up equity shares to eligible shareholders.

The company’s board approved the proposal on 28 September. The issue remains subject to applicable regulatory and statutory approvals.

Ola Electric has not yet finalised the issue price, rights entitlement ratio, record date, number of shares, payment terms or the opening and closing dates of the issue. These details will be decided by the board or its rights issue committee.

A rights issue allows a listed company to raise capital by offering new shares to its existing shareholders, usually in proportion to their current holdings.

According to Ola Electric’s Draft Letter of Offer, about Rs 350 crore of the proceeds are proposed to be used for repayment or prepayment of borrowings, while Rs 400 crore has been allocated for organic growth initiatives. The balance is intended for general corporate purposes.

Part of a Wider Fundraising Plan

The latest proposal follows a separate decision by Ola Electric’s board on 5 September to approve an enabling resolution allowing the company to raise up to Rs 1,500 crore.

The fundraising can be carried out through equity shares or securities convertible into or exchangeable for equity shares. Permitted routes include a further public offer, rights issue, QIP, private placement or a combination of these, subject to shareholder and other required approvals.

The Rs 1,000 crore rights issue is therefore being pursued under a broader fundraising authorisation of up to Rs 1,500 crore. The company has not said that it will necessarily raise the entire Rs 1,500 crore or specified whether it will use another route for any additional amount.

At the same 5 September meeting, the board approved an increase in Ola Electric’s authorised share capital from about Rs 8,318.50 crore to Rs 8,721.87 crore, subject to shareholder approval.

Earlier QIP Raised Rs 780 Crore

Ola Electric had separately raised Rs 780.24 crore through a QIP in June. The company allotted 21.76 crore equity shares to QIB at Rs 35.86 per share, according to an exchange filing dated 4 June.

That QIP was carried out under an earlier fundraising authorisation of up to Rs 1,500 crore approved by Ola Electric’s board in October 2025. It is separate from the fresh enabling resolution approved in September 2026.

The latest fundraising plan comes after Ola Electric reported lower revenue but a narrower loss in the first quarter of FY27.

Revenue from operations fell 45% year-on-year to Rs 455 crore in the quarter ended June 2026, from Rs 828 crore a year earlier.

Its consolidated net loss narrowed to Rs 336 crore from Rs 428 crore in the corresponding quarter of the previous financial year.

Ola Electric has also been expanding beyond its EV business into battery-cell manufacturing and energy storage.

FAQs

1. How much is Ola Electric planning to raise through the rights issue?
Ola Electric plans to raise up to Rs 1,000 crore through a rights issue of partly paid-up equity shares.

2. When did Ola Electric’s board approve the rights issue?
The company’s board approved the proposal on 28 September.

3. How does Ola Electric plan to use the rights issue proceeds?
About Rs 350 crore is proposed for repayment or prepayment of borrowings, while Rs 400 crore is allocated for organic growth initiatives. The balance is intended for general corporate purposes.

4. How much did Ola Electric raise through its earlier QIP?
Ola Electric raised Rs 780.24 crore through a QIP in June by allotting 21.76 crore equity shares to QIB at Rs 35.86 per share.

5. What was Ola Electric’s revenue in the first quarter of FY27?
Ola Electric’s revenue from operations fell 45% year-on-year to Rs 455 crore in the quarter ended June 2026, from Rs 828 crore a year earlier.