Ola Electric Mobility will discuss raising funds via a rights issue of equity shares at a board meeting on September 28, the company said in a regulatory filing. The raise, which will require regulatory, statutory approvals, comes weeks after its board approved plans to raise up to Rs 1,500 crore via equity shares and other securities.The electric two-wheeler maker told stock exchanges that it is considering the rights issue to enable participation by all eligible shareholders including retail investors, institutional holders and promoter group, subject to applicable laws. This method ensures that existing shareholders retain their proportionate stake if they subscribes to the offer, unlike other fundraising methods that may favour institutional investors.
The latest funding plan comes on the back of Ola Electric’s qualified institutional placement (QIP) in June 2026, through which it raised about Rs 780 crore. The QIP, done under the earlier board approval to raise up to Rs 1,500 crore, was an oversubscribed issue that attracted bids from domestic mutual funds as well as international investors. The company had initially targeted a smaller issue size through the QIP but ended up raising a higher amount at a price that was slightly below the regulatory floor price.
Ola Electric, which was founded by Bhavish Aggarwal, has been fighting to survive in a competitive electric two-wheeler market in India where the company has witnessed a volatile trajectory in terms of market share, and is currently competing intensely with other two-wheeler makers, primarily Tata Motors. The company has used the proceeds from its initial public offering (IPO) in August 2024 – that raised Rs 5,500 crore in fresh funds – for expanding its operations including research and development initiatives, augmenting capacities, paying off debts and other purposes. There have been multiple allocations of the funds approved by shareholders to meet various requirements including strengthening the balance sheet and building up its battery cell manufacturing capabilities.
The decision to raise funds via a rights issue will ensure that all shareholders get an opportunity to participate. The promoter group, led by Aggarwal with a significant stake in the company, is expected to subscribe to the offer, according to some observers. A successful rights issue would add to the already improved liquidity position of Ola Electric and aid the company’s endeavour to build a stable financial structure.
Details of the proposed rights issue, including size, price and allocation of proceeds will be decided by the board at the meeting on September 28, and will involve necessary approvals from regulators. The company will deliberate on its plans to localise components, innovate on its products and improve operational efficiencies in the electric mobility space. Shareholders and investors will be keenly watching the outcome of the board meeting on September 28.