Ola Electric board approves rights issue at 26% discount; shareholders to pay in two calls

Ola Electric on Wednesday said its board has fixed the issue price for its proposed rights issue at Rs 27 per equity share, about 26 per cent below the current market price, with the amount payable in two calls.

In a statement to the stock exchanges, the company said, "The Board of Ola Electric has approved a rights issue of up to Rs 1,000 crore at Rs 27 per share, payable in two calls. The issue price has been fixed by the board at about 26 per cent below the current market price, giving all existing shareholders an opportunity to add to their holding at a substantial discount."

Sixty per cent of the issue price is payable on application, with the balance due on a final call on a date to be set by the board. A two-call structure gives shareholders more time to pay, and reflects that the company does not need all the money immediately.

The rights issue was first approved by the board on September 28, when the company filed its draft letter of offer. The company had earlier received an enablement to raise up to Rs 1,500 crore, of which Rs 780 crore was raised through a QIP in June 2026.

Chairman and Managing Director Bhavish Aggarwal will subscribe to his full entitlement as per sources close to the transaction. On Sunday, the company said Aggarwal had pledged a 4.32 per cent stake solely to fund his subscription, with no shares being sold. The promoter group together holds around 32.97 per cent in the company.

The proceeds could go towards reducing debt and put the company on the path to cash breakeven without further funding in the near future, a banking source tracking the development said to PTI.

Further details, including the record date, will be disclosed as per applicable regulations.