Ola Electric Mobility (ON:OLAE) has approved a rights issue that could raise as much as ₹1,000 crore in equity, subject to regulatory clearance. The board also noted that a qualified institutional placement earlier this year closed at ₹780 crore with a 56% oversubscription, drawing investors such as Goldman Sachs and Motilal Oswal.
The move comes after the company posted a 96% jump in first‑quarter vehicle registrations to 43,719 units, up from 22,252 in the March quarter, according to its July 1 filing. June saw 16,144 registrations, the strongest monthly haul in recent quarters.
Despite the fundraising push, Ola Electric shares slid 1.66% to ₹37.84 on the NSE on September 28, the lowest close in the last six weeks. Analysts caution that the dilution from the rights issue could pressure EPS in the coming quarter.
The board will set the issue price, entitlement ratio and record date in the coming days; investors are watching the timing closely as the EV sector’s valuation multiples hover around 12‑15x revenue. The company’s guidance for FY28 remains unchanged, but the rights issue may provide a buffer against supply‑chain headwinds and support continued expansion in the two‑wheeler market.