Ola Electric Mobility
Ola Electric approves rights issue to raise up to ₹1,000 crore
Ola Electric Mobility has announced that its board has approved a rights issue of partly paid-up equity shares to raise up to ₹1,000 crore, subject to necessary regulatory and statutory approvals. The company disclosed this in an exchange filing dated 28 September, stating that the board will meet on Monday, 5 October to consider and finalise various matters related to the rights issue.
The rights issue will be offered to eligible shareholders as of a record date, which will be determined and announced by the company at a later stage. Key terms such as the issue price, rights entitlement ratio, record date, issue timeline, and payment structure will be announced after the board meeting.
The proposed shares will have a face value of ₹10 each. Ola Electric emphasized that the rights issue will be conducted in accordance with applicable laws and SEBI regulations, with detailed terms to be communicated to stock exchanges once finalised.
This fundraise comes shortly after the company raised ₹780 crore through a qualified institutional placement (QIP) in June, which was oversubscribed by 56%. The QIP saw participation from institutional investors including Goldman Sachs, BNP Climate Fund, and several Indian mutual funds such as Motilal Oswal, Mirae Asset, Kotak Mahindra, JM Financial, and Baroda BNP Paribas.
In terms of stock performance, Ola Electric's shares gained 2.35% over the past week but declined 2.85% in one month and 9.38% over three months. Despite this, the stock delivered a 56.04% return over the past six months, with a year-to-date gain of 0.96%. On a longer horizon, the stock is down 30.87% over the past year and 62.95% over two years.
The company will announce the specific details of the rights issue, including pricing and timing, after the board meeting and receipt of required approvals.
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