Ola Electric is moving to shore up its capital reserves. The board has greenlit a rights issue for 37.03 crore partly paid-up equity shares, priced at ₹27 each. This valuation sits roughly 26% below the stock's October 7 closing price of ₹36.26 on the NSE, offering existing shareholders a distinct discount for additional stakes.
The structure is split. Shareholders must pay ₹16.20 (60% of the issue price) upon application. The remaining ₹10.80 (40%) will be called in a first and final call, with the company targeting completion by October 31, 2027. The record date to determine eligibility is set for October 13, 2026, with the subscription window opening on October 22 and closing on October 30, subject to regulatory extensions.
Why now? This raise comes just months after Ola Electric closed a ₹780 crore qualified institutional placement (QIP) in June. That earlier deal was oversubscribed by 56%, drawing capital from heavyweights like Goldman Sachs, BNP Climate Fund, and major Indian mutual funds including Motilal Oswal and Mirae Asset. The rapid succession of fundraises signals a strategic push to fund aggressive expansion.
The dilution impact is measurable. With 462.84 crore shares currently outstanding, a fully subscribed rights issue will push the total to 499.87 crore. Promoters have committed to participating in the issue on the same terms as public shareholders, ensuring alignment in equity stakes. For traders watching the BSE and NSE, the 26% discount will likely keep the stock in focus as the record date approaches.