Ola Electric Mobility promoter and founder Bhavish Aggarwal has pledged a 4.32% stake in the company to fund his participation in its proposed rights issue of up to ₹1,000 crore. The electric vehicle maker disclosed the development on Sunday, October 4, clarifying that the pledge is linked exclusively to Aggarwal’s subscription to the fundraising.
According to Ola Electric, the pledge was disclosed in its Draft Letter of Offer filed on September 28. The company said there are currently no other pledges on Aggarwal’s securities and stressed that no shares are being sold as part of the transaction.
Credits: Mint
Bhavish Aggarwal to Participate in Rights Issue
Ola Electric said Aggarwal will participate in the rights issue alongside other eligible shareholders and will subscribe on the same terms.
The pledge is therefore intended to provide funding for his participation rather than facilitate a stake sale. The move comes as Ola Electric prepares for another major capital raise, with the company looking to raise as much as ₹1,000 crore through partly paid-up equity shares.
The rights issue was approved by Ola Electric’s board last month, although several important details are yet to be finalized.
The company has not yet determined the issue price, rights entitlement ratio, record date, opening and closing dates, or payment structure. These details will be decided by the board and subsequently disclosed to the stock exchanges.
Ola Electric said the fundraising will be conducted in accordance with applicable laws and regulations laid down by the Securities and Exchange Board of India (SEBI).
Ola Electric Seeks Fresh Capital After ₹780 Crore QIP
The proposed rights issue comes only a few months after Ola Electric raised ₹780 crore through a qualified institutional placement (QIP) in June.
The QIP was oversubscribed by 56%, highlighting institutional interest in the electric vehicle manufacturer despite the challenges facing the company and India’s rapidly evolving EV market.
Several prominent institutional investors participated in the QIP. These included Goldman Sachs and BNP Climate Fund, along with domestic mutual funds such as Motilal Oswal Mutual Fund, Mirae Asset Mutual Fund, Kotak Mahindra Mutual Fund, JM Financial Mutual Fund and Baroda BNP Paribas Mutual Fund.
Following the receipt of applications and funds from eligible institutional investors, Ola Electric’s Fund Raising Committee approved the closure of the QIP.
The latest rights issue indicates that the company continues to focus on raising capital as it works to strengthen its financial position and support its broader business plans.
Rights Issue Details Yet to Be Announced
Under the proposed issue, Ola Electric plans to issue partly paid-up equity shares with a face value of ₹10 each.
However, shareholders will have to wait for the company to announce the final terms before determining the amount they may need to contribute. The record date will determine which shareholders are eligible to participate.
The rights issue will also be subject to regulatory and statutory approvals.
Aggarwal’s pledge means that his participation will be backed by financing against part of his existing holding. Ola Electric has emphasized that this should not be interpreted as a sale of his stake, with the company specifically stating that no shares are being sold.
Credits: Sangri Today
Ola Electric Shares Remain Under Pressure
The latest fundraising effort comes at a crucial time for Ola Electric, whose shares have faced considerable volatility since the company’s stock market debut.
On October 1, Ola Electric Mobility shares closed at ₹37.09 on the BSE, gaining ₹0.14, or 0.38%.
The company’s fundraising plans could remain a key focus for investors as it works to secure additional capital while navigating competition, production requirements and the broader transition toward electric mobility.
For existing shareholders, the final issue price and entitlement ratio will be particularly important. These details will determine the extent of dilution and the amount shareholders will need to invest to maintain their proportional ownership.
With Aggarwal committing to participate in the issue and pledging part of his stake to fund that participation, the promoter is signalling his intention to remain involved in the company’s capital-raising exercise.
Ola Electric is expected to provide further details once the board finalizes the terms of the ₹1,000 crore rights issue.
