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Ola Electric founder and CMD Bhavish Aggarwal has pledged a 4.32% stake in the electric two-wheeler maker to fund his participation in the company’s proposed rights issue of up to ₹1,000 Cr. In an exchange filing yesterday, the company said the pledge was solely meant to finance Aggarwal’s subscription to the issue and that there were no other pledges outstanding on his securities. “No shares are being sold. The promoter will invest alongside all other shareholders on the same terms,” Ola Electric said. Citing the promoter’s disclosures under SAST regulations, PTI reported that the arrangement involves pledging 20 Cr shares in favour of CTL Trusteeship Limited to secure non-convertible debentures issued by Krutrim Data Centre Pvt Ltd. The report described Krutrim Data Centre as a non-operative promoter group entity owned by Aggarwal, separate from Krutrim SI Designs, which operates the AI and cloud infrastructure businesses. The debenture proceeds will fund Aggarwal’s participation in Ola Electric’s rights issue, it added. Ola Electric’s statement did not disclose the amount raised against the shares or the financing terms. According to the draft letter of offer filed last week, Aggarwal held a 26.52% stake in Ola Electric as of June 30, 2026. The 20 Cr pledged shares represent about 16.3% of that holding. The draft document said Aggarwal has committed to subscribing to his full rights entitlement, subject to provisions allowing him to renounce entitlements in favour of promoter group members or specified investors. He may also subscribe to additional shares or any portion left unsubscribed, subject to minimum public shareholding requirements. The disclosure comes after Ola Electric’s board cleared the rights issue on September 28. The issue is part of a broader ₹1,500 Cr fundraising plan approved by the board on September 5. The company has not announced whether or how it will raise the remaining ₹500 Cr. Ola Electric said it chose the rights issue route to enable participation by eligible retail, institutional, and promoter group shareholders. Debt Repayment, Expansion Drive Fundraise Of the proceeds, the company plans to deploy ₹350 Cr towards repaying or prepaying borrowings of Ola Electric and its material subsidiaries, including accrued interest and applicable prepayment penalties. Another ₹400 Cr is earmarked for organic growth initiatives across its electric mobility and energy storage businesses, including manufacturing, R&D, stores, dealerships, service infrastructure, and sales and marketing. The remaining net proceeds will go towards general corporate purposes. The company expects to deploy the funds during FY27 and FY28. As the shares will be partly paid-up, shareholders will pay a portion on application and the balance through a subsequent call. The draft document envisages completing the first and final call by October 31, 2027, although the board can revise the schedule. The proposed issue follows Ola Electric’s ₹780.2 Cr QIP in June. Of the ₹744.9 Cr net proceeds, it earmarked ₹225 Cr for debt repayment, ₹335 Cr for organic growth initiatives, and ₹184.9 Cr for general corporate purposes. Fundraising Amid Falling Revenue, Market Share The fundraising push comes amid continued pressure on Ola Electric’s business. Its consolidated operating revenue fell 45% to ₹455 Cr in Q1 FY27 from ₹828 Cr in the year-ago quarter, while net loss narrowed 21.5% to ₹336 Cr from ₹428 Cr. For FY26, operating revenue halved to ₹2,253 Cr from ₹4,514 Cr in FY25, while E2W deliveries fell to 1.74 Lakh units from 3.59 Lakh units. More recently, Ola Electric recorded 13,449 registrations in September, down 3.5% MoM, giving it around 6.5% of the E2W market, according to Vahan data as of October 1. The company described FY26 as a “year of structural reset”, during which it rationalised its retail network, cut costs, strengthened service operations, and focused on improving unit economics. It has since opened its first dealer-operated stores across seven states. Last month, it outlined plans to build a network of more than 500 dealerships over the following two quarters, with dealer partners handling local sales and service and company-owned outlets transitioning into product experience centres. Beyond E2Ws, Ola Electric is expanding its battery cell manufacturing and battery energy storage businesses. It also launched the S1Z escooter range in August, powered by its internally developed Bharat Cell LFP technology. At 13:20 IST, Ola Electric's shares were trading at ₹36.76, down 0.89% from the previous day's close.
document fetched 2026-10-06 02:57 · canonical https://inc42.com/buzz/bhavish-aggarwal-pledges-4-32-ola-electric-stake-to-fund-rights-issue-subscription