Ola Electric Mobility's board approved the terms of its proposed rights issue of partly paid-up equity shares worth nearly ₹1,000 crore at ₹27 per share on Wednesday, October 7. According to the latest regulatory filing, the company's Board of Directors approved the issuance of 37.02 crore rights equity shares, aggregating to ₹999.74 crore, assuming full subscription and payment of call monies. The rights issue price of ₹27 per share comprises a face value of ₹10 and a premium of ₹17, with shareholders required to pay ₹16.20 per share on application, while the remaining ₹10.80 per share will be payable through the first and final call, expected to be completed on or before October 31, 2027. The issue price has been fixed by the board at about 26% below the current market price, giving all existing shareholders an opportunity to add to their holdings at a substantial discount.
The rights issue will open on October 22, 2026, with the last date for on-market renunciation of rights entitlements set for October 26, 2026. The issue is scheduled to close on October 30, 2026, though the Board or Rights Issue Committee may extend the period subject to applicable regulations. Under the approved entitlement ratio, eligible shareholders will receive two rights equity shares for every 25 fully paid-up equity shares held on the record date. The record date has been fixed as October 13, 2026, to determine shareholders eligible to receive rights entitlements. The two-call structure spreads the funding requirement for investors while allowing Ola Electric to raise the capital without requiring the entire amount upfront. The board has retained the right to change the payment schedule, including the timing of the first and final call, either before or after October 31, 2027, depending on business requirements and other commercial considerations.
Ola Electric shares fell 10% to ₹32.70 on Thursday, October 8, following the board's approval of the rights issue terms. The stock opened nearly flat at ₹36.02 and touched an intraday high of ₹32.70 on the NSE, representing a 9.96% decline from the previous close. At 01:46 AM, Ola's shares were trading at ₹33.37, down around 8.12%. In comparison, the benchmark Nifty 50 was down 1.60% at 22,240.70. The stock has significantly underperformed the broader market across all key periods, declining 9.57% over the past week compared to a 0.81% fall in the Nifty 500. Over one month, Ola Electric has slipped 10.90% against a 6.16% decline in the benchmark, while year-to-date, the stock is down 10.63% compared to the Nifty 500's 9.32% decline. Over the past year, Ola Electric has lost 34.55%, significantly underperforming the Nifty 500's 6.18% decline.
The rights issue price of ₹27 per share will be payable in two calls with specific payment requirements. On application, eligible shareholders will have to pay ₹16.20 per share, comprising ₹6 towards the face value and ₹10.20 towards the premium, representing 60% of the total issue price. The first and final call will require an additional payment of ₹10.80 per share, comprising ₹4 towards the face value and ₹6.80 towards the premium, representing the remaining 40% of the issue price. The company currently has 462.84 crore outstanding equity shares, and assuming full subscription and payment of call monies, the number of outstanding shares will rise to 499.87 crore after the rights issue. The proceeds will be allocated with around ₹350 crore for debt repayment or prepayment, ₹400 crore for organic growth initiatives, and the remaining for general corporate purposes. Approximately ₹600 crore would arrive initially, with the balance payable subsequently.
Ola Electric's June-quarter consolidated net loss narrowed to ₹336 crore from ₹428 crore a year earlier, but revenue plunged 45% to ₹455 crore. Operating cash outflow increased to ₹215 crore from ₹143 crore, while free cash outflow widened to ₹351 crore from ₹282 crore. The company's September VAHAN registrations stood at 13,449 units, giving Ola approximately 6.5% market share and placing it fifth behind TVS Motor, Bajaj Auto, Ather Energy and Hero MotoCorp. June-quarter deliveries recovered to 39,192 from 20,256 in March, but remained below 68,192 a year earlier. Founder Bhavish Aggarwal has pledged 20 crore shares, representing 4.32% of Ola's equity, to finance his rights subscription, with the company maintaining that the arrangement involves no equity sale. The two fundraising exercises would together raise approximately ₹1,780 crore, highlighting the capital required to support Ola's turnaround.
