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SoftBank sold 5.55 Cr Ola Electric shares between January 6 and October 22, reducing its holding to 11.7% from 12.9% SoftBank’s continued sell-down comes as Ola Electric seeks fresh capital to repay debt and fund growth amid declining revenue and market share The investor also sold 1.12 Cr rights entitlements, representing 25.9% of its allocation under Ola Electric’s nearly ₹1,000 Cr rights issue Japanese tech investor SoftBank has sold another 1.2% stake in Ola Electric through a series of open market transactions between January 6 and October 22, reducing its holding in the electric two-wheeler maker to 11.7%. Its investment vehicle, SVF II Ostrich (DE) LLC, sold 5.55 Cr shares during the period, leaving it with 54.15 Cr shares. The filing pegged its holding before the transactions at 12.9%, calculated using the company’s latest share capital. The SoftBank entity also sold 1.12 Cr rights entitlements during the period, even as Ola Electric looks to raise nearly ₹1,000 Cr through a rights issue to repay debt and fund expansion. SoftBank received 4.33 Cr rights entitlements against the 54.15 Cr shares it held on the October 13 record date, under the issue’s two-for-25 ratio. It sold approximately 25.9% of these entitlements, leaving it with 3.21 Cr as of October 22. Rights entitlements allow eligible shareholders to subscribe to additional shares at the issue price. Shareholders can exercise these entitlements or transfer them to other investors. Selling an entitlement does not reduce their existing equity holding. SoftBank first backed Ola Electric in July 2019 with a $250 Mn investment that valued the EV maker at around $1 Bn. It participated in a subsequent funding round in September 2021, when Ola Electric’s valuation rose to $3 Bn. The Japanese investor has progressively reduced its holding since the company went public in August 2024. In January this year, SoftBank disclosed the sale of 9.46 Cr shares, or a 2.15% stake, through open market transactions between September 3, 2025, and January 5. That disclosure put its holding after the sales at 13.53%. The latest filing calculates the pre-sale holding using Ola Electric’s expanded share capital. Before that, the investor sold another 9.4 Cr shares, representing a 2.15% stake, between July and September 2025. Another Round Of Fundraising Ola Electric is seeking additional capital to stabilise its core electric scooter business while investing in battery manufacturing and energy storage. Its ₹999.74 Cr rights issue opened on October 22 and will close on October 30. It comprises up to 37.03 Cr partly paid-up equity shares priced at ₹27 apiece. Investors must pay ₹16.20 per share on application, with the remaining ₹10.80 payable through a subsequent call. In June, Ola Electric raised ₹780.24 Cr through a qualified institutional placement (QIP), exceeding its initial target of ₹500 Cr. It had earmarked ₹225 Cr from the net proceeds for debt repayment, ₹335 Cr for organic growth, and the remainder for general corporate purposes. Meanwhile, Motilal Oswal Financial Services and Calliope Capital Advisors applied for a combined 2.39 Cr shares on the opening day of the rights issue. Motilal Oswal applied for approximately 1.28 Cr shares against entitlements transferred by ANI Technologies, an Ola Electric promoter-group entity. Calliope applied for another 1.1 Cr shares against entitlements transferred by Indus Trust, another promoter-group entity. Revenue Decline Adds Pressure The fundraise comes as Ola Electric steps up investments in battery cell manufacturing and battery energy storage systems while pursuing a broader business reset. This includes shifting towards dealer-operated stores and rolling out more affordable electric scooters. The company’s consolidated operating revenue fell 45% to ₹455 Cr in Q1 FY27 from ₹828 Cr in the corresponding quarter of the previous fiscal year. Its net loss, however, narrowed 21.5% to ₹336 Cr from ₹428 Cr. It is yet to announce its Q2 FY27 results. Ola Electric is also battling to regain ground in the electric two-wheeler market. Its market share fell to 6.5% in September from 7.6% in August. Earlier this month, Goldman Sachs downgraded its recommendation on the stock to ‘Sell’ from ‘Neutral’ and cut its target price to ₹23 per share. Shares of Ola Electric ended today’s trading session 16.775 higher at ₹34.95 on the BSE.
document fetched 2026-10-28 02:53 · canonical https://inc42.com/buzz/softbank-sells-1-2-stake-in-ola-electric-offloads-1-12-cr-rights-entitlements