Ola Electric has opened a qualified institutional placement (QIP) with a floor price of ₹37.74 per share, marking a 4.53% discount from its previous close of ₹39.53, according to a stock exchange filing. The Bhavish Aggarwal-led company announced the move to strengthen its position in the electric two-wheeler (E2W) market and improve its financial health.
The company’s fund raising committee approved the QIP opening, which may include a discount of up to 5% on the floor price. The final issue price will be set in consultation with the book-running lead managers. Ola Electric plans to use part of the proceeds to repay or prepay existing borrowings taken by the parent and its subsidiaries, including term loans and working capital facilities from banks and financial institutions, the filing stated.
Reducing debt is expected to lower Ola Electric’s outstanding liabilities and improve its debt-equity ratio, enhancing financial flexibility. The company also aims to cut debt servicing costs such as interest payments and prepayment charges. Funds may be routed to subsidiaries through equity, debt, or other financial instruments to facilitate repayment of their borrowings, supporting future business expansion in the competitive E2W sector.
The QIP launch was disclosed in a filing on June 1, 2026, with the final pricing and allotment details to be announced following consultations with lead managers. This capital raise is part of Ola Electric’s strategy to deleverage and strengthen its balance sheet amid ongoing market challenges.