Ola Electric plans to raise fresh funding
What's the story
Ola Electric, a leading electric two-wheeler manufacturer based in Bengaluru, will hold a board meeting on October 25. The agenda of the meeting is to discuss a proposal for raising capital by issuing equity shares or other eligible securities. The board will consider various fundraising methods, such as private placement and qualified institutional placement (QIP), among others, subject to regulatory and shareholder approval.
Past funding
Last fundraising round
The upcoming meeting comes over a year after Ola Electric raised ₹5,500 crore through a fresh issue in its initial public offering (IPO) in August 2024. In May this year, the board had approved raising up to ₹1,700 crore via non-convertible debentures and other eligible debt instruments. Despite the stock declining over 40% from its IPO price of ₹76 to close at ₹52.92 on Friday, the company maintains it is well-funded for this year and next.
Information
Market performance and challenges
In September, Ola Electric's market share slipped to fourth place with a 13.2% share, down from 18.7% in August due to operational and regulatory challenges such as discrepancies in reported sales and consumer complaints over vehicle quality.
New developments
Product expansion and controversies
Ola Electric recently expanded its product range with the launch of Ola Shakti, a battery energy storage system, on October 16. However, the company is also facing a workplace harassment controversy related to the suicide of an employee, K Aravind. A handwritten note was found in his room, accusing company superiors of mental harassment and non-payment of salary and allowances. An FIR has been registered in this case, which Ola Electric has challenged before the Karnataka High Court.