Ola Electric Shares Fall Nearly 10% After ₹1,000 Crore Rights Issue Priced At 26% Discount

Ola Electric Mobility shares fell nearly 10% in intraday trade on Thursday after the electric two-wheeler maker finalised the terms of its proposed ₹1,000 crore rights issue at a substantial discount to its prevailing market price.

The stock fell as much as 9.9% to ₹32.71 on Thursday from its previous close of ₹36.32. At around 12:45 pm, it was trading at ₹33.28, down about 8.3%, according to NSE data. The broader market was also weak during the session.

Ola Electric's board on Wednesday approved the issue of 37.03 crore partly paid-up equity shares at ₹27 apiece, which would raise ₹999.74 crore assuming full subscription and payment of the subsequent call money. The ₹27 issue price represents a discount of about 26% to Ola Electric's Wednesday closing price of ₹36.32.

“The Board of Ola Electric has approved a rights issue of up to ₹1,000 crore at ₹27 per share, payable in two calls. 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 holding at a substantial discount,” the company said in a statement filed with the exchanges.

Two Shares For Every 25 Held

Eligible shareholders will be entitled to two rights shares for every 25 fully paid-up Ola Electric shares held on the record date of October 13.

The rights issue will open on October 22 and close on October 30, while October 26 will be the last date for on-market renunciation of rights entitlements.

The shares will be issued on a partly paid-up basis. Investors will pay ₹16.20 per share, or 60% of the ₹27 issue price, at the time of application. The remaining ₹10.80, or 40%, will be collected through a first and final call, which is currently expected on or before October 31, 2027. The board has retained the right to alter the timing depending on business requirements.

If fully subscribed, Ola Electric's outstanding share count will rise from about 462.84 crore shares to 499.87 crore shares, an increase of around 8%.

₹350 Crore For Debt Repayment

According to Ola Electric's offer documents, around ₹350 crore of the proposed proceeds will be used to repay or prepay debt, while another ₹400 crore has been earmarked for organic growth initiatives. The balance will go towards general corporate purposes and issue-related expenses.

The ₹400 crore organic growth allocation includes spending on areas such as research and development, manufacturing, stores and service infrastructure, and sales and marketing, according to the Letter of Offer.

The rights issue follows a ₹780 crore qualified institutional placement completed in June 2026. Ola Electric had earlier received shareholder approval to raise up to ₹1,500 crore through various routes.

Aggarwal Pledges Shares To Participate

Founder, Chairman and Managing Director Bhavish Aggarwal has said he will participate in the rights issue on the same terms as other shareholders.

Earlier this month, Aggarwal pledged 20 crore Ola Electric shares, representing 4.32% of the company's equity, to fund his participation in the issue. The shares have been pledged in favour of CTL Trusteeship Limited to secure non-convertible debentures issued or proposed to be issued by Krutrim Data Centre Private Limited.

Ola Electric subsequently said the pledge was being made solely to finance Aggarwal's participation in the rights issue and that no promoter shares were being sold as part of the arrangement.

“The promoter will invest alongside all other shareholders on the same terms,” the company reiterated in its October 7 statement.

The fresh pledge comes less than ten months after Aggarwal had cleared his earlier promoter-level pledges.

At their previous peak in December 2025, around 17.3 crore Ola Electric shares, or 3.93% of the company's equity, had been pledged. Aggarwal subsequently monetised part of his personal holding to repay around ₹260 crore of promoter-level debt and release those shares. The latest 20 crore-share pledge is therefore larger than the previous peak.

Capital Raise Comes Amid Competitive Pressure

The latest fundraising comes as Ola Electric continues to face intense competition in India's electric two-wheeler market.

The company's September registrations stood at around 13,450 units, giving it roughly 6.5% of the electric two-wheeler market, behind TVS Motor, Bajaj Auto, Ather Energy and Hero MotoCorp, according to Vahan data.

Ola Electric has been looking to restore volumes while investing in its vehicle, cell manufacturing and energy-storage businesses. The company had characterised FY26 as a “year of reset”, focused on service, product quality, margins, operating costs and cash discipline.

The ₹1,000 crore rights issue gives the company additional capital for debt reduction and growth, while allowing existing shareholders, including the promoter, to maintain their holdings by participating proportionately.