In its first annual general meeting since listing, Ola Electric received shareholders' approval to reallocate proceeds from its initial public offering and extend the timeline for their deployment, according to an exchange filing by the company on Friday.
The motion was approved with 99% votes in favour, the filing showed. The move will help drive growth in its auto and battery cell businesses, along with debt repayment and other corporate purposes, it said in a separate statement.
“After the reallocation of funds, the unutilised amount is as follows: Rs 1,049 crore for R&D investment, Rs 901 crore for organic growth initiatives, Rs 395 crore for debt repayment/prepayment, and Rs 248 crore for general corporate purposes,” Ola Electric said.
Ola Electric raised Rs 5,500 crore from its fresh issue in August 2024. Of this, Rs 1,228 crore was to be used by subsidiary OCT for capacity expansion of the cell manufacturing unit at the company’s Gigafactory from 5 GWh to 6.4 GWh, according to the prospectus for the IPO. This amount was to be deployed by March 2026.
Within the Gigafactory, Ola aims to mass-produce its homegrown NMC 2170 lithium-ion cells. At present, it imports cells from LG Chem in South Korea for its electric scooters, according to reports.
The company had said it will use Rs 1,600 crore from the IPO proceeds to fund research and development till financial year 2027, spend Rs 800 crore to repay debt incurred by subsidiary OET, and another Rs 350 crore for organic growth initiatives.
Ola’s new Bharat cell, rare earth-free motor
At its annual Sankalp event on August 15, Ola Electric launched its first indigenously manufactured 4680 Bharat cell battery and a rare earth metal-free motor.
The 4680 Bharat cell has 10% higher energy density and 15 years of battery life, the company claimed. It can be used in Ola vehicles, energy storage devices such as solar units, and even drones.
Ola Electric also unveiled the new S1 Pro+ scooter, powered by the 4680 cell, with a top speed of 141 km/h and a promised range of 320 km. Its price has been cut from Rs 1,99,999 to Rs 1,69,999, with deliveries beginning September 22. The company announced Roadster X+, with the new cell and a range of 501 km. Its price has been cut from Rs 2,24,999 to Rs 1,89,999.
Ola’s second major announcement was a motor built with ferrite instead of neodymium, eliminating the need for rare earth magnets. These magnets, typically the strongest permanent magnets, have become a supply risk for India’s auto industry amid rare earth metal export curbs from China.
The company also introduced MoveOS 6, its upgraded operating system that follows MoveOS 5.
Laying out its future launch calendar, the company said it will launch the S1 Pro Sport, a sport-segment scooter priced at Rs 1,49,999 (tentative), expected in January 2026. The company also revealed its upcoming electric bike, Diamond Head, targeted for mid-2027.
Ola Electric had changed tack after a rough January-March quarter, shifting focus to capital discipline and risk management. For the April-June quarter, the electric scooter maker reported a net loss of Rs 428 crore, compared to Rs 327 crore a year earlier last quarter, though narrower than the Rs 870 crore loss in the March quarter. The company posted operating revenue of Rs 828 crore last quarter, almost half of Rs 1,644 crore it posted in the year-ago period.
Ola Electric shares closed down 3.38% at Rs 47.18 apiece on the BSE on Friday, compared to a 0.85% drop in Sensex.
The motion was approved with 99% votes in favour, the filing showed. The move will help drive growth in its auto and battery cell businesses, along with debt repayment and other corporate purposes, it said in a separate statement.
“After the reallocation of funds, the unutilised amount is as follows: Rs 1,049 crore for R&D investment, Rs 901 crore for organic growth initiatives, Rs 395 crore for debt repayment/prepayment, and Rs 248 crore for general corporate purposes,” Ola Electric said.
Ola Electric raised Rs 5,500 crore from its fresh issue in August 2024. Of this, Rs 1,228 crore was to be used by subsidiary OCT for capacity expansion of the cell manufacturing unit at the company’s Gigafactory from 5 GWh to 6.4 GWh, according to the prospectus for the IPO. This amount was to be deployed by March 2026.
Within the Gigafactory, Ola aims to mass-produce its homegrown NMC 2170 lithium-ion cells. At present, it imports cells from LG Chem in South Korea for its electric scooters, according to reports.
The company had said it will use Rs 1,600 crore from the IPO proceeds to fund research and development till financial year 2027, spend Rs 800 crore to repay debt incurred by subsidiary OET, and another Rs 350 crore for organic growth initiatives.
Ola’s new Bharat cell, rare earth-free motor
At its annual Sankalp event on August 15, Ola Electric launched its first indigenously manufactured 4680 Bharat cell battery and a rare earth metal-free motor.
The 4680 Bharat cell has 10% higher energy density and 15 years of battery life, the company claimed. It can be used in Ola vehicles, energy storage devices such as solar units, and even drones.
Ola Electric also unveiled the new S1 Pro+ scooter, powered by the 4680 cell, with a top speed of 141 km/h and a promised range of 320 km. Its price has been cut from Rs 1,99,999 to Rs 1,69,999, with deliveries beginning September 22. The company announced Roadster X+, with the new cell and a range of 501 km. Its price has been cut from Rs 2,24,999 to Rs 1,89,999.
Ola’s second major announcement was a motor built with ferrite instead of neodymium, eliminating the need for rare earth magnets. These magnets, typically the strongest permanent magnets, have become a supply risk for India’s auto industry amid rare earth metal export curbs from China.
The company also introduced MoveOS 6, its upgraded operating system that follows MoveOS 5.
Laying out its future launch calendar, the company said it will launch the S1 Pro Sport, a sport-segment scooter priced at Rs 1,49,999 (tentative), expected in January 2026. The company also revealed its upcoming electric bike, Diamond Head, targeted for mid-2027.
Ola Electric had changed tack after a rough January-March quarter, shifting focus to capital discipline and risk management. For the April-June quarter, the electric scooter maker reported a net loss of Rs 428 crore, compared to Rs 327 crore a year earlier last quarter, though narrower than the Rs 870 crore loss in the March quarter. The company posted operating revenue of Rs 828 crore last quarter, almost half of Rs 1,644 crore it posted in the year-ago period.
Ola Electric shares closed down 3.38% at Rs 47.18 apiece on the BSE on Friday, compared to a 0.85% drop in Sensex.
