Ola Electric shares crashed 9% in Friday's intraday trade, snapping their four-day winning streak as investors assessed the EV maker's proposed rights issue and ongoing funding needs. The stock declined as much as 9% to ₹38.60 on NSE from the previous closing price of ₹42.52, with trading volumes remaining high as the EV two-wheeler maker became the third-most actively traded stock on NSE in early deals. As per Moneycontrol, the sharp run-up in Ola Electric shares hit the brakes on Friday, with the stock falling despite overall positive market sentiment. The market reaction comes after the company disclosed its rights issue announcement after market hours on Wednesday, September 23, with the stock having risen 17% during the last four sessions before Friday's decline.
According to an exchange filing by Ola Electric Mobility, the company's Board of Directors will convene on Monday, September 28, 2026, to consider and approve a fundraising proposal via a rights issue of equity shares. The e-scooter manufacturer informed stock exchanges that the rights issue route is being considered to enable participation by all eligible shareholders, including retail, institutional and promoter group participants, subject to applicable laws. As reported by Moneycontrol, the proposed fundraise, subject to regulatory and statutory approvals, comes just months after the company's board approved plans to raise up to ₹1,500 crore through equity shares and other securities. The announcement comes after Ola Electric informed the exchanges that the meeting will consider the fundraise under Regulation 29(1)(d) of the Securities and Exchange Board of India (SEBI) Listing Regulations.
Ola Electric reported significant improvement in vehicle registrations, with VAHAN registrations nearly doubling sequentially to 43,719 units in Q1 FY27 from 22,252 units in the March quarter, according to the company's July 1 exchange filing. June accounted for 16,144 registrations, making it Ola Electric's strongest monthly performance in recent quarters. The company attributed this improvement to better retail execution, stronger customer demand and improved product availability. As per Moneycontrol, Ola Electric said operational initiatives undertaken over the past few quarters, along with its product portfolio, helped sustain momentum in India's electric two-wheeler market.
Ola Electric shares opened at ₹42.50 apiece on BSE on Friday, touching an intraday low of ₹38.70 and high of ₹42.52 per share. According to Angel One's Hitesh Rathi, Technical Analyst, the stock remains range-bound with upside capped around ₹46–47 zone and downside protected near ₹35–36 levels. Rathi noted that the formation of a bullish 100% pole on the higher-timeframe Point & Figure (P&F) chart from the ₹20–21 levels indicates strong demand at lower levels. He warned that a decisive break below ₹35 could open the way towards the ₹22–20 zone, while a breakout above ₹44 could trigger fresh upward momentum in the stock.
This proposed rights issue follows Ola Electric's ₹780 crore qualified institutional placement (QIP) in June, which was oversubscribed by 56% and initially planned to raise ₹500 crore. The QIP attracted demand from long-only investors, including global investors such as Goldman Sachs and BNP Climate Fund, as well as Indian mutual funds including Motilal Oswal Mutual Fund, Mirae Asset Mutual Fund, Kotak Mahindra Mutual Fund, JM Financial Mutual Fund and Baroda BNP Paribas Mutual Fund. Ola Electric's Fund Raising Committee subsequently approved the closure of the QIP after receiving application forms and funds from eligible qualified institutional buyers. If approved, this would be Ola's subsequent method of fundraising from the market, a proposal that is pending approval by the board. The company had earlier received approval to raise up to ₹1,500 crore, of which ₹780 crore has already been raised through the QIP in June 2026.
Following the Q1 results, brokerages continued to remain bearish on the stock despite recent recovery. Citi maintained its 'Sell' call on the shares of Ola Electric, with a target price of ₹26 apiece, citing weaker volumes and lower gross margin that were offset by cost control and PLI penalty reversal. Kotak Institutional Equities also maintained its 'Sell' call on the shares of Ola Electric, with a target price of ₹20 apiece, noting that the company's volume scale remains the critical hurdle. Goldman Sachs has a 'Neutral' rating on the shares of Ola Electric with a target price ₹40 apiece, with the international brokerage citing cash burn concerns, with free cash flow at negative ₹3.5 billion and no material cell revenue expected in Q2. As per The Economic Times, the stock's recent recovery has been supported by strong sales data, PLI incentives and other factors that have improved investor sentiment towards the EV scooter maker.
