Fundraising plan approved
Ola Electric Mobility Ltd. has received board approval to raise up to ₹1,500 crore through a combination of equity shares and convertible securities. This move is aimed at strengthening the electric two-wheeler manufacturer’s financial resources and supporting growth initiatives.
Fundraising routes and approvals
The funds may be raised through multiple routes, including a further public offer, rights issue, qualified institutional placement (QIP), private placement, or any other mode permitted under applicable regulations. The plan remains subject to shareholder approval and necessary regulatory clearances.
Background
This development comes a little over a year after Ola Electric, which listed on the stock exchanges in August 2024, raised ₹5,500 crore through a fresh issue in its initial public offering (IPO). In May 2025, the company’s board had approved plans to raise up to ₹1,700 crore via non-convertible debentures and other debt instruments, marking its first post-IPO fundraising exercise.
Strategic significance
The latest fundraising approval comes amid challenges faced by the company, including market share erosion against rivals like Bajaj Auto and TVS Motor Company, regulatory scrutiny over discrepancies between claimed sales and actual vehicle registrations, and a widening net loss in Q1 FY26. The fresh capital infusion is expected to strengthen operations, expand manufacturing, and accelerate research and development in the highly competitive electric two-wheeler segment.