Ola Electric gets board approval to raise ₹1,500cr
What's the story
Ola Electric Mobility has announced its board of directors' approval for a fundraising plan of up to ₹1,500 crore. The company could raise the capital through equity shares or convertible securities such as warrants or other instruments. The fundraising strategy includes public offer, rights issue, qualified institutional placement (QIP), private placement, among other methods. However, the plan is subject to approval by the company's shareholders.
Growth strategy
Ola Electric's expansion and restructuring
Ola Electric has been expanding its electric two-wheeler range and charging network across India. The company is also investing in its Gigafactory in Tamil Nadu to boost domestic battery production capabilities. The latest fundraising plan comes amid an organizational restructuring at Ola Electric and changes in its shareholder composition.
Market shifts
Stake sales and financial challenges
Hyundai Motor and Kia Corporation exited Ola Electric by selling their entire stake for around ₹690 crore through block deals. SoftBank also reduced its stake in the company while Z47's holding fell below 2% after a partial exit. Recently, Ola Electric witnessed a 50% drop in revenue and a 23% increase in losses amid rising competition from players like Ather Energy and TVS Motor Company.