Ola Electric shareholders on Friday approved a special resolution to revise the use of IPO proceeds and extend time to utilise the public issue proceeds. The resolution was backed by 99.09% of shareholders at the company’s eighth Annual General Meeting (AGM), its first since going public in August 2024.
From ambitious targets to a phased approach
The development comes after the company scaled down the proposed capacity expansion of the Ola gigafactory in Tamil Nadu, which was the largest planned use of IPO proceeds. The Bengaluru-based EV maker had earlier targeted producing 100 GWh of indigenously developed 4680-format ‘Bharat Cell’ by 2030. However, the cell maker has revised its roadmap, cutting its target sharply to 5 GWh by FY29, down from 20 GWh by mid-2026.
“Given that the EV market has evolved slower in recent quarters, we don’t foresee the need to expand beyond 5 GWh till FY29,” Bhavish Aggarwal, founder, chairman and MD, Ola Electric, said during the company’s first-quarter earnings call.
Ola Electric raised a total of ₹6,146 crore through its IPO, including ₹5,500 crore via fresh equity and an offer for sale (OFS) of ₹646 crore by promoters and selling investors. According to the draft red herring prospectus (DRHP), over ₹1,200 crore of the net IPO proceeds were intended for gigafactory capacity expansion, ₹800 crore for debt repayment, ₹1,600 crore for research and development, and ₹350 crore for organic growth initiatives.
The shareholders’ approval for reallocation of IPO funds will now help the company to unlock capital and use the proceeds in other areas to fuel growth.
Focus on commercialisation and core products
After multiple delays, Ola Electric has announced integration of its in-house developed Lithium-ion ‘4680 Bharat Cell’ into vehicles. The first batch—S1 Pro+ 5.2 kWh and Roadster X+ 9.1—fitted with Bharat Cell, is expected to roll out in September.
“This year’s Sankalp and our vision of India is accelerating this mission by commercialising 4680 Bharat Cell and rare earth free motors later this year,” Aggarwal said at the company’s annual event ‘Sankalp 2025’.
At the Sankalp 2024 event, Aggarwal had outlined an ambitious expansion timeline—starting with 5 GWh of cell production in 2024, scaling to 20 GWh by 2026, and targeting 100 GWh by 2030. He also announced plans to integrate the 4680-format ‘Bharat Cell’ into Ola vehicles by April 2025.
Currently, the company has a functional cell production capacity of 1.4 GWh, expected to reach 5 GWh by the end of this fiscal. “At 1.4 GWh, we will be saving at gross margin level but the opex of the cell plant will not be fully leveraged to the scale it is built to. At 5 GWh, we will be saving money from procuring outside. We don’t need to go to 20 GWh,” Aggarwal said in the latest earnings call.
Shares of Ola Electric ended 4% lower at ₹46.98 on NSE.