Ola Electric Mobility has announced a rights issue of Rs 1,000 crore, offering shares at Rs 27 each to existing investors. This capital raise comes as the company manages intense competition and recent operational losses. The subscription window opens on October 22, 2026, with a record date of October 13.
Ola Electric Mobility has officially cleared plans to raise approximately Rs 1,000 crore through a rights issue. The company board approved the issuance of 37.03 crore partly paid-up equity shares at a price of Rs 27 per share. This price consists of a face value of Rs 10 and a premium of Rs 17. The move is designed to bring in fresh capital as the electric two-wheeler maker looks to strengthen its financial position.
Under this offer, existing shareholders are entitled to receive two rights shares for every 25 fully paid-up shares held as of the record date, which is set for October 13, 2026. The company has structured the payment to be flexible, allowing investors to pay Rs 16.20 per share at the time of application. The remaining Rs 10.80 will be collected through a future call, expected to be settled by October 31, 2027.
The subscription period for this rights issue will begin on October 22, 2026, and will close on October 30, 2026. Shareholders who do not wish to subscribe can choose to sell their rights entitlements in the open market, with the deadline for this renunciation set for October 26.
This fundraising comes at a time when Ola Electric is navigating a challenging period in the electric vehicle sector. The company reported a net loss of Rs 336 crore in the first quarter of fiscal year 2027. While it raised Rs 780 crore via a Qualified Institutional Placement in June 2026, this new rights issue highlights the ongoing need for capital to support operations. The sector is currently facing stiff competition from established players like TVS, Bajaj, and Hero MotoCorp, as well as focused rivals like Ather Energy. This pressure has impacted the company's market share and overall profitability.
To signal confidence, promoter Bhavish Aggarwal has pledged a 4.32% stake in the company, amounting to 20 crore shares. This move is intended to finance his participation in the rights issue. While pledging shares is a common way for promoters to raise funds to support their company, it also introduces leverage, which investors often monitor closely.
Investors will likely track the subscription levels of this issue to gauge market sentiment regarding the company's strategy. The ability of the company to manage cash flow while keeping up with competitors remains a key factor to watch. Future updates on the project execution and the timeline for the final payment call will be important for shareholders to follow.