Ola Electric Mobility on Monday said its board has approved a fundraising of up to Rs 1,000 crore through a rights issue to eligible equity shareholders. The detailed terms of the issue, including the price, entitlement ratio, record date, timing and payment schedule, will be determined by the board and disclosed in due course, the electric two-wheeler maker said in an exchange filing.
Earlier this month, Ola Electric’s board approved ₹1,500 crore fundraising of up to through multiple routes, including the issuance of equity shares and/or securities convertible into or exchangeable for equity shares. The company has chosen a rights issue for its capital raise.
“The rights issue route is being considered to enable participation by all eligible shareholders including retail, institutional and promoter group, subject to applicable laws,” Ola Electric had said in a filing last week.
As per the Draft Letter of Offer available on the company’s website, Bhavish Aggarwal, Chairman and Managing Director of Ola Electric, has confirmed that he will subscribe to his rights entitlement. Any renunciation of his entitlement will be limited to the promoter group or specified investors.
Aggarwal and the promoter group held a combined 32.97% stake in Ola Electric as of June 2026. Domestic institutional investors, including mutual funds and insurance companies, held a 12.16% stake.
As per the Draft Letter of Offer, around ₹350 crore of the proceeds will be used for debt repayment, while ₹400 crore will be allocated towards organic growth. The remaining amount will be used for general corporate purposes.
In June, the company raised ₹780 Crore through qualified institutional placement (QIP) – part of an earlier approval to raise up to ₹1,500 Crore, which Ola Electric’s board cleared in October 2025.
The latest fundraise comes at a crucial time for Ola Electric, which is grappling with weak sales and a loss of market share even as the electric two-wheeler industry continues to report record volumes. The company sold 10,991 units in September, with its market share halving to 6% from the same month last year.
Ola Electric commanded nearly 50% of the market at its peak two years ago, before rivals TVS Motor, Bajaj Auto and Ather Energy gained ground. Together, the three manufacturers currently account for around 65% of electric two-wheeler sales, relegating Ola Electric to fifth place.
The fundraising is also important as Ola Electric scales up its cell manufacturing operations and expands into the battery energy storage business under its Ola Shakti and Mahashakti brands. In May, the company’s board approved an investment of Rs 2,000 crore in two wholly owned subsidiaries — ₹1,500 crore in Ola Electric Technologies for electric vehicle manufacturing and ₹500 crore in Ola Cell Technologies for battery-cell production.
During the first quarter earnings call, Aggarwal said that Ola Electric will ramp up production at its cell manufacturing Gigafactory, with capacity expected to increase to 6 GWh by September from 2.5 GWh.
Separately, the board approved the appointment of Deepa Bansal as company secretary, compliance officer, and key managerial personnel, effective September 28. Before joining Ola Electric, Bansal was associated with Kothari Petrochemicals, Tessolve Semiconductor and Medi Assist Healthcare Services, where she gained experience in the secretarial domain.