Ola Electric Mobility has approved plans to raise up to ₹1,500 crore as it looks to strengthen its balance sheet and support future growth. The move comes as the EV maker works to expand battery-cell manufacturing despite pressure on vehicle sales.
Highlights
- Ola Electric board approves fundraising of up to ₹1,500 crore.
- Funds may be raised through equity shares or other eligible securities.
- Fundraise could use multiple routes, including a QIP.
Ola Electric Mobility’s board has approved a fundraising plan of up to ₹1,500 crore as the electric two-wheeler manufacturer looks to strengthen its balance sheet and support its future expansion plans.
According to the company, the proposed fundraising may be undertaken through multiple routes, including the issuance of equity shares or other securities that can be converted into or exchanged for equity shares.
The company may also consider a qualified institutional placement (QIP) as part of the fundraising exercise. The proposal will be subject to approvals from shareholders and other regulatory authorities, where required.
The fresh fundraising comes around three months after Ola Electric raised ₹780 crore through a QIP.
The capital raise assumes importance as the company continues to face pressure in the electric two-wheeler market. Ola Electric reported sales of 13,849 units in August, representing a 29% year-on-year decline, even as rivals including TVS Motor, Bajaj Auto and Ather Energy continued to post growth.
Alongside its electric vehicle business, Ola Electric is expanding its battery manufacturing operations. The company is scaling up cell manufacturing capacity at its Gigafactory and expects production capacity to reach 6 GWh by September, up from 2.5 GWh.
Earlier, the company’s board had approved an investment of ₹2,000 crore in two wholly owned subsidiaries—₹1,500 crore in Ola Electric Technologies for electric vehicle manufacturing and ₹500 crore in Ola Cell Technologies for battery-cell production.
The company has also undergone a leadership change. Chief Operating Officer Hyun Shik Park resigned from Ola Electric following the close of business on Saturday, citing personal reasons.
The proposed ₹1,500-crore fundraising could provide Ola Electric with additional financial flexibility as it seeks to expand manufacturing capacity and compete in India’s rapidly evolving electric two-wheeler market.
es
