Ola Electric gets shareholder nod to reallocate IPO funds
What's the story
Ola Electric has successfully secured shareholder approval for the reallocation of funds raised through its initial public offering (IPO). The move is aimed at unlocking capital to fuel the company's next phase of growth and further strengthen its balance sheet. The Bengaluru-based firm held its first annual general meeting (AGM) since going public in 2024 on Friday.
Investor confidence
99% of shareholders voted in favor of the resolution
The AGM saw an overwhelming 99% of shareholders voting in favor of the resolution to reallocate IPO proceeds. This strong support from investors highlights their faith in Ola Electric and its long-term vision. The company said this strategic move will fully meet its near-term organic growth capital requirements, paving the way for further expansion.
Fund allocation
Unutilized amount post-reallocation stands at ₹1,049 crore
To support its next phase of growth, Ola Electric has strategically reallocated funds for organic growth initiatives, general corporate purposes, and debt repayment. After this reallocation, the unutilized amount stands at ₹1,049 crore for R&D investment, ₹901 crore for organic growth initiatives, ₹395 crore for debt repayment/prepayment, and ₹248 crore for general corporate purposes.
Market debut
Ola Electric made its market debut in August 2024
Ola Electric Mobility made its market debut on August 9, 2024. However, the company's shares closed 3.38% lower at ₹47.18 apiece on the Bombay Stock Exchange (BSE) after the AGM announcement. Despite this minor setback in share performance, the approval of fund reallocation signals a strong commitment from shareholders toward Ola Electric's future growth plans and financial stability.