Ola Electric plans to raise ₹999.74 crore through a rights issue opening on October 22 and closing on October 30, the company announced. The issue price is set at ₹27 per share, a discount of over 5% from the closing price of ₹36.30. Shareholders will be entitled to two rights shares for every 25 fully paid-up shares held as of the record date, October 13, according to inc42.com.
The rights issue will comprise 37.03 crore partly paid-up equity shares with a face value of ₹10 each. Shareholders must pay 60% of the issue price, or ₹16.20 per share, on application, with the remaining ₹10.80 payable through a first and final call. The board approved the rights issue on September 28. Founder and CMD Bhavish Aggarwal pledged a 4.32% stake to fund his participation in the rights offering, the report added.
Ola Electric intends to use the proceeds for debt reduction, business expansion, and general corporate purposes. The company has earmarked ₹350 crore for repaying or prepaying borrowings at Ola Electric and its material subsidiaries, covering accrued interest and prepayment penalties. A larger allocation of ₹400 crore will support business expansion initiatives, highlighting the company's focus on strengthening its financial position and growth plans.
The last date for on-market renunciation of rights entitlements is October 26. The rights issue pricing includes a ₹17 premium over the face value. Ola Electric’s move to raise capital through this rights issue follows the board’s approval in late September and is a key step in funding its strategic priorities, as detailed by inc42.com.