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Ola Electric’s board of directors have cleared a rights issue of partly paid-up equity shares amounting to an aggregate of up to ₹1,000 Cr to unidentified eligible equity shareholders. The board will now decide on particulars like the price of the rights issue, rights entitlement ratio, record date and timing of the issue, among others, soon. The announcement comes just days after the EV maker’s board gave the nod for it to raise fresh funding of up to ₹1,500 Cr. On September 23, it chose the rights issue as the route for its capital raise “to enable participation by all eligible shareholders including retail, institutional and promoter group, subject to applicable law”. It remains to be seen through which means, or if at all, Ola Electric will raise the remaining ₹500 Cr. Notably, this is Ola Electric’s second big fundraise in recent months. In June, the company raised ₹780.24 Cr via qualified institutional placement (QIP) – part of an earlier approval to raise up to ₹1,500 Cr, which Ola Electric’s board cleared in October 2025 and was subsequently greenlit by shareholders in November last year. Back then, the company had shared plans of utilising ₹225 Cr from the proceeds to repay or prepay certain borrowing and ₹335 Cr to fuel organic growth initiatives. At this moment, the EV company is stepping up its investments in its EV, battery cell manufacturing, and battery energy storage system businesses. It appears to increasingly be betting on the latter two of these verticals for long-term growth. As for its bread and butter E2W category, the company recently launched its new mass market S1Z range, starting at ₹79,999. Its market share also improved to 7.6% in August from 6.8% in July, although the number of units it sold declined by 7.7% to 13,132. On the financial front, Ola Electric’s consolidated net loss narrowed 22% YoY to ₹336 Cr in Q1 FY27 from ₹428 Cr. However, its operating revenue plunged 45% to ₹455 Cr from ₹828 Cr in the year-ago quarter. Sequentially, revenue rose 72% from ₹265 Cr, while loss narrowed from ₹500 Cr. Shares of Ola Electric ended today’s trading session ₹1.64% lower at ₹37.87.
document fetched 2026-09-29 03:00 · canonical https://inc42.com/buzz/ola-electrics-board-approves-%e2%82%b91000-cr-rights-issue