Ola Electric Mobility drops after announcing Rs 1,000 crore rights issue

Ola Electric Mobility fell 3.52% to Rs 35.04 on Thursday after the company announced a rights issue of up to 37.03 crore partly paid-up equity shares.

The company will issue the shares at Rs 27 apiece, including a premium of Rs 17 per share, aggregating up to Rs 999.74 crore, assuming full subscription and receipt of all call monies.

The rights issue will be offered to eligible shareholders in the ratio of two rights equity shares for every 25 fully paid-up equity shares held as of the record date of 13 October 2026.

Eligible shareholders will pay Rs 16.20 per share on application, comprising Rs 6 towards face value and Rs 10.20 towards premium. The remaining Rs 10.80 per share will be payable as the first and final call, which is expected to be completed on or before 31 October 2027.

The rights issue will open on 22 October 2026 and close on 30 October 2026. The last date for on-market renunciation of rights is 26 October 2026.

The basis of allotment is scheduled to be finalised on 2 November 2026, with the rights shares expected to be credited on 3 November and listed on 4 November 2026.

According to the Letter of Offer, Rs 350 crore of the rights proceeds will be used for debt repayment or prepayment, while Rs 400 crore is earmarked for organic growth. The remaining funds will be used for general corporate purposes.

Founder and promoter Bhavish Aggarwal is set to participate in the rights issue. He has pledged a 4.32% stake in Ola Electric to fund his subscription. The company said the pledge was solely for funding his participation in the rights issue and that no shares were being sold.

The latest fundraising follows a Rs 780 crore qualified institutional placement completed in June 2026 and forms part of the company's broader capital-raising plans.

Ola Electric Mobility is an electric vehicle manufacturer with vertically integrated capabilities across EVs, battery cells and related technologies. The company operates its manufacturing facility in Tamil Nadu and a battery innovation centre in Bengaluru focused on cell and battery technology.

The company had reported a net loss of Rs 336 crore in Q1 FY27, compared with a net loss of Rs 426 crore in Q1 FY26. Revenue from operations declined 45.0% year-on-year (YoY) to Rs 455 crore in Q1 FY27 as against Rs 828 crore in Q1 FY26.

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