Ola Electric Prices ₹1,000 Crore Rights Issue at ₹27, a 26% Discount, as Shares Slide

Ola Electric Mobility has locked in the terms of its proposed ₹1,000 crore rights issue, setting the issue price at ₹27 per share — a discount of about 26 percent to the stock's recent trading level.

The company's board approved the full terms at its meeting on Wednesday, October 7, a day after receiving in-principle approvals from both the BSE and the NSE.

Under the terms disclosed in the exchange filing, Ola will issue 37,02,72,665 partly paid-up equity shares with a face value of ₹10 each. Including the ₹17 per-share premium, the issue will raise ₹999.74 crore, assuming full subscription and payment of the call money.

Existing shareholders will receive two rights shares for every 25 fully paid-up equity shares they hold on the record date of October 13, 2026. The issue opens on October 22 and closes on October 30, with on-market renunciation of rights entitlements allowed until October 26.

Investors will pay ₹16.20 per share — 60 percent of the issue price — at the time of application. The remaining ₹10.80 will be collected through a first and final call expected to be completed on or before October 31, 2027. The board has kept the flexibility to revise the payment schedule under applicable laws.

Ola said around ₹350 crore of the proceeds will be used to repay or prepay debt, while roughly ₹400 crore is earmarked for organic growth initiatives. The rest will be deployed for general corporate purposes.

The fundraising comes just months after the company raised ₹780 crore through a qualified institutional placement in June, which was itself part of a broader ₹1,500 crore fundraising plan.

The company's outstanding equity share count is expected to rise from about 462.84 crore shares to 499.87 crore after the issue, assuming full subscription.

Promoter Bhavish Aggarwal, who holds about 26.52 percent of the company, confirmed he will subscribe to the full extent of his rights entitlements and will not renounce them, and may subscribe to additional or unsubscribed shares if deemed fit.

The company had earlier disclosed that Aggarwal would pledge a 4.32 percent stake to fund his participation, noting that no shares are being sold.

The market's verdict was swift: Ola Electric shares fell 4 to 6 percent after the announcement, as investors weighed the steep discount against the EV maker's ongoing cash needs.

With the rights issue expected to close by October 30, all eyes are now on shareholder uptake — and whether the discounted raise can steady the stock's rocky ride.