Ola Electric Boosts Battery Unit with Internal Share Allotment

Ola Electric Technologies (OET) has approved allotting 12.76 crore Series A preference shares valued at ₹127.64 crore to its fellow subsidiary, Ola Cell Technologies (OCT).

This internal capital transfer is a key move for Ola Electric's strategy to advance its in-house battery cell development and manufacturing capabilities.

Internal Funding for Battery Development

Ola Electric Technologies Private Limited (OET), a subsidiary of Ola Electric Mobility, has officially approved the allotment of 12,76,40,000 Series A Optionally Convertible Redeemable Preference Shares (OCRPS) to Ola Cell Technologies Private Limited (OCT), another subsidiary within the group.

The total valuation of this share allotment amounts to ₹1,276.40 lakh, which equates to ₹127.64 crore.

Each preference share carries a nominal value of ₹10.

This transaction, sanctioned by OET's board on April 27, 2026, is part of an internal restructuring initiative within the Ola Electric group.

Strategic Importance for Ola's Battery Ambitions

This development highlights Ola Electric's dedicated effort to develop and produce its own battery cells, a critical component for its electric vehicles and broader energy solutions.

By reinforcing Ola Cell Technologies (OCT), the company aims to decrease its reliance on external suppliers and gain greater control over its technology roadmap, aligning with its goal of creating a comprehensive EV ecosystem.

Ola's Past Battery Investments

Ola Electric has made strategic investments in battery innovation. In July 2022, the company announced plans for a Battery Innovation Center in Bangalore.

Further demonstrating this commitment, Ola Electric secured substantial funding in October 2023 to establish its Ola Gigafactory in Tamil Nadu for lithium-ion battery manufacturing.

More recently, Ola Electric has been planning to raise up to ₹2,000 crore by divesting a stake in OCT, aiming to fuel further expansion of its lithium-ion cell manufacturing capacity, which is currently at 1.5 GWh and targets 6 GWh.

The company has also been developing proprietary battery technologies, including NMC and LFP cells, showcasing its in-house capabilities.

Impact of the Share Allotment

• This share allotment provides OCT with necessary capital, enabling it to advance its battery technology research, development, and manufacturing projects.
• It clarifies the ownership structure within Ola Electric's group concerning its battery division.
• The preference shares likely include terms for future conversion, adding a layer to the group's capital structure.

Regulatory and Operational Risks

Ola Electric has encountered significant regulatory challenges, including showroom inspections for lacking trade certificates and government scrutiny over sales data discrepancies. The company attributed these issues to registration backlogs.

Additionally, its statutory auditor flagged a 'material weakness' in inventory controls at Ola Electric Technologies, citing inadequate systems for physical verification.

Competitive Landscape in EVs and Batteries

While Ola Electric is a leading EV manufacturer with strong battery technology ambitions, it competes with established players like Ather Energy and TVS Motor Company in the EV sector.

In battery manufacturing, rivals such as Reliance Industries and JSW are also making substantial investments. Companies like Tata Agratas and Amara Raja are also focusing on NMC technology, similar to Ola's initial approach.

Key Areas to Monitor

• The specific terms for converting these Series A OCRPS into equity, and their potential dilution effects.
• Progress on OCT's expansion plans for its lithium-ion cell manufacturing facility.
• Any updates on Ola Electric's broader strategy to raise external funds by selling a stake in OCT.
• How this internal funding helps accelerate the development and deployment of Ola's in-house battery technologies.