Electric two-wheeler maker Ola Electric has scheduled a board meeting on October 25 to consider a proposal to raise capital by issuing equity shares or other eligible securities, according to a stock exchange filing.
The board will evaluate raising funds via private placement, preferential issue, qualified institutional placement (QIP) or a combination of these.
The proposed fundraising comes over a year after Ola Electric, which listed on the exchanges in August 2024, raised Rs 5,500 crore through a fresh issue in its initial public offering (IPO).
In May this year, the Bengaluru-based company received board approval to raise up to Rs 1,700 crore via the issuance of non-convertible debentures and other eligible debt securities, marking its first fundraising exercise since the IPO.
This fundraising plan follows Ola Electric’s shareholders’ letter for the first quarter of this financial year, which said that the company was well funded for the current and next year.
In the letter the company said “we are well funded for this year and the next from our June end cash balance of Rs 3,197 crore and we don't expect anything more needed for operating needs”.
During its June quarterly earnings call, Ola Electric also said it was prioritising capital discipline and risk management.
Ola Electric shares have fallen more than 40% from its IPO price of Rs 76. On Thursday, the stock closed at Rs 53.67 apiece on the BSE, giving the company a market capitalisation of Rs 23,673 crore. Its listed competitor Ather Energy has a market cap of Rs 27,880 crore.
Separately, Ola Electric Technologies, a wholly owned subsidiary, last month secured approval to raise up to Rs 877.6 crore by issuing 87.76 crore preference shares to another subsidiary, Ola Cell Technologies.
The company has also expanded into battery energy storage systems with its first non-vehicle product, Ola Shakti, launched on October 16.
Ola Electric has faced operational and regulatory challenges in recent months, including discrepancies in reported sales, consumer complaints over vehicle quality and missing trade certificates at several retail outlets. It slipped to the fourth spot in the electric two-wheeler market with a 13.2% market share in September, compared to 18.7% in August.
For the April-June quarter, the company posted a net loss of Rs 428 crore, up from Rs 327 crore a year ago but narrower than the Rs 870 crore loss in March, with operating revenue at Rs 828 crore, roughly half from a year ago.
The company is also embroiled in a workplace harassment controversy linked to the suicide of an employee, K Aravind. Ola Electric said a first information report (FIR) had been registered and that it had challenged the FIR’s registration before the Karnataka High Court.
The board will evaluate raising funds via private placement, preferential issue, qualified institutional placement (QIP) or a combination of these.
The proposed fundraising comes over a year after Ola Electric, which listed on the exchanges in August 2024, raised Rs 5,500 crore through a fresh issue in its initial public offering (IPO).
In May this year, the Bengaluru-based company received board approval to raise up to Rs 1,700 crore via the issuance of non-convertible debentures and other eligible debt securities, marking its first fundraising exercise since the IPO.
This fundraising plan follows Ola Electric’s shareholders’ letter for the first quarter of this financial year, which said that the company was well funded for the current and next year.
In the letter the company said “we are well funded for this year and the next from our June end cash balance of Rs 3,197 crore and we don't expect anything more needed for operating needs”.
During its June quarterly earnings call, Ola Electric also said it was prioritising capital discipline and risk management.
Ola Electric shares have fallen more than 40% from its IPO price of Rs 76. On Thursday, the stock closed at Rs 53.67 apiece on the BSE, giving the company a market capitalisation of Rs 23,673 crore. Its listed competitor Ather Energy has a market cap of Rs 27,880 crore.
Separately, Ola Electric Technologies, a wholly owned subsidiary, last month secured approval to raise up to Rs 877.6 crore by issuing 87.76 crore preference shares to another subsidiary, Ola Cell Technologies.
The company has also expanded into battery energy storage systems with its first non-vehicle product, Ola Shakti, launched on October 16.
Ola Electric has faced operational and regulatory challenges in recent months, including discrepancies in reported sales, consumer complaints over vehicle quality and missing trade certificates at several retail outlets. It slipped to the fourth spot in the electric two-wheeler market with a 13.2% market share in September, compared to 18.7% in August.
For the April-June quarter, the company posted a net loss of Rs 428 crore, up from Rs 327 crore a year ago but narrower than the Rs 870 crore loss in March, with operating revenue at Rs 828 crore, roughly half from a year ago.
The company is also embroiled in a workplace harassment controversy linked to the suicide of an employee, K Aravind. Ola Electric said a first information report (FIR) had been registered and that it had challenged the FIR’s registration before the Karnataka High Court.
