Ola Electric shares fall 9%: What's behind today's decline?
What's the story
Ola Electric Mobility's shares have witnessed a sharp decline, falling by as much as 9% to ₹38.75 apiece on the NSE. The fall comes after the company announced its plan to hold a board meeting on September 28 to discuss raising fresh capital via a rights issue of equity shares. The proposal is subject to regulatory and statutory approvals.
Past success
Ola Electric raised ₹780 crore through QIP in June
The announcement of the proposed fundraising comes just a few months after Ola Electric raised ₹780 crore through a qualified institutional placement (QIP) in June.
The QIP was oversubscribed by 56% over the shares on offer, attracting several institutional investors including global names such as Goldman Sachs and BNP Climate Fund.
Indian mutual funds like Motilal Oswal Mutual Fund, Mirae Asset Mutual Fund, Kotak Mahindra Mutual Fund, and Baroda BNP Paribas Mutual Fund also participated in this fundraise.
Market performance
Vehicle registrations nearly doubled sequentially in April-June
Ola Electric has also reported a significant increase in its vehicle registrations.
According to an exchange filing dated July 1, VAHAN registrations nearly doubled sequentially to 43,719 units in Q1 FY27 from 22,252 units in the March quarter.
June was the strongest month in recent quarters with 16,144 registrations.
The company attributed this growth to improved retail execution and increased customer demand, along with better product availability.