Shares of Ola Electric Mobility Ltd. experienced a notable decline on Thursday, dropping approximately 4% after the company announced a significant rights issue proposal. The electric two-wheeler manufacturer aims to raise nearly ₹1,000 crore through the issuance of new equity shares.
Details of the Rights Issue Proposal
The proposed rights issue involves offering up to 370,272,665 partly paid-up equity shares. Each share is priced at ₹27, with the total issue size aggregating to ₹999.74 crore. Eligible shareholders will be offered two rights equity shares for every 25 fully paid-up equity shares they hold as of the record date, set for October 13, 2026.
Investors participating in the issue will initially pay ₹16.20 per rights equity share, which constitutes 60% of the issue price, at the time of application. The remaining 40%, or ₹10.80 per share, is slated for payment through a first and final call, expected to be completed by October 31, 2027.
Key Dates and Promoter Commitment
- Record Date: October 13, 2026
- Issue Opening Date: October 22, 2026
- Issue Closing Date: October 30, 2026
- Final Call Payment Deadline: On or before October 31, 2027
Ola Electric has already secured in-principle approvals from both the BSE and NSE for the listing of these rights equity shares. Notably, Bhavish Aggarwal, the promoter of Ola Electric, has confirmed his intention to subscribe to the full extent of his rights entitlement. He will not renounce his rights, except for permitted transfers within the promoter group or to specific investors, and may also subscribe to any unsubscribed shares, adhering to minimum public shareholding requirements.
Purpose of Funds
The capital raised through this rights issue is earmarked for several strategic purposes. Primarily, the funds will be utilized for the repayment or pre-payment of certain outstanding borrowings, including associated interest and prepayment penalties. Additionally, a portion of the proceeds will support organic growth initiatives and general corporate purposes, bolstering the company's financial position and expansion plans.