Ola Electric's Rights Issue Details Unveiled
Ola Electric Mobility Ltd., the prominent electric two-wheeler manufacturer, has initiated a rights issue valued at nearly Rs 1,000 crore. The company proposes to offer 37,02,72,665 partly paid-up equity shares, each with a face value of Rs 10, at an issue price of Rs 27 per share. This pricing represents a substantial 26% discount compared to the prevailing market price of Rs 36.32 per share.
The total issue size aggregates to Rs 999.73 crore, designed to allow eligible existing shareholders to increase their stake in the company.
Key Dates and Subscription Terms
For shareholders interested in participating, the record date for determining eligibility has been set for Tuesday, October 13, 2026. Eligible equity shareholders will be offered the right to subscribe to shares in a ratio of two new rights equity shares for every 25 fully paid-up equity shares they hold on this record date.
The payment structure for the rights issue is staggered. Shareholders will initially be required to pay Rs 16.20 per rights equity share upon application, which constitutes 60% of the total issue price. The remaining 40%, amounting to Rs 10.80 per rights equity share, will be due on the first and final call, expected to be completed on or before October 31, 2027.
Promoter's Commitment to the Issue
In a significant show of confidence, Ola Electric's promoter, Bhavish Aggarwal, has confirmed his intention to subscribe to the full extent of his rights entitlements. He has stated that he will not renounce his rights, except for potential renunciation within the Promoter Group or to specific investors as per regulatory guidelines.
Furthermore, Aggarwal has indicated that he may apply for and subscribe to additional equity shares that remain unsubscribed in the issue. This move aims to ensure compliance with minimum public shareholding requirements under relevant SEBI regulations, reinforcing the promoter's commitment to the company's financial stability and growth.