Ola Electric shares plunge 9%; board approval for proposed rights issue in focus
Ola Electric recently informed the stock exchanges that its Board of Directors will meet on Monday, September 28, 2026, to consider, among other matters, a proposal to raise funds through a rights issue of equity shares.
- Sep 25, 2026,
- Updated Sep 25, 2026 1:52 PM IST
Shares of Ola Electric Mobility Ltd fell sharply in Friday's trade, declining 9.48 per cent to hit a low of Rs 38.50. The fall came after the stock had gained in each of the previous four sessions. At last check, Ola Electric shares were trading 8.89 per cent lower at Rs 38.74.
Despite Friday's decline, the stock has gained 62.36 per cent over the past six months.
Ola Electric recently informed the stock exchanges that its Board of Directors will meet on Monday, September 28, 2026, to consider, among other matters, a proposal to raise funds through a rights issue of equity shares.
"The rights issue route is being considered to enable participation by all eligible shareholders including retail, institutional and promoter group, subject to applicable laws," the company said in its exchange filing.
The proposed fundraise will be subject to such regulatory and statutory approvals as may be required, the company added.
A rights issue is an offer of additional shares made by a company to its existing eligible shareholders. The terms, size and other details of Ola Electric's proposed issue will be subject to the Board's consideration and approval.
At the end of last month, the EV maker opened bookings for its S1Z electric scooter range, with prices starting at Rs 79,999. The company has positioned the S1Z as its most accessible scooter range.
Ola Electric CEO Bhavish Aggarwal said the S1Z is the company's first scooter range powered by its indigenous Bharat Cell LFP technology. According to the company, the cells have been developed at its Battery Innovation Centre and are manufactured at its Gigafactory in Tamil Nadu.
"The S1Z is the first scooter range in India powered by our indigenous Bharat Cell LFP technology, developed at our Battery Innovation Centre, and manufactured at our Gigafactory in Tamil Nadu. Our cells are fully built by Ola, with 426 patents to back them. This is the beginning of a new era in electric vehicles with LFP cells, that will address the largest segment of this market," Aggarwal said.
He added that battery costs account for a significant portion of an EV's overall cost and said Ola Electric's in-house LFP cell manufacturing would help reduce this cost. The company claims the S1Z offers a range of up to 301 km under IDC testing.
Kranthi Bathini, Equity Strategist at WealthMills Securities, noted that the stock has been witnessing sharp swings recently. "The company's ability to improve revenue and profitability would remain important for its medium- to long-term prospects. Ola Electric remains a calculated risk at present. The key is to see how the company improves its revenue parameters and profitability, which will be crucial for its medium- to long-term prospects. Investors with a high-risk appetite can continue to hold the stock," he also said.
Osho Krishan, Chief Manager – Technical & Derivative Research at Angel One, stated, "Ola Electric declined today following gains in recent sessions. From a technical perspective, the Rs 36–35 range is expected to cushion near-term weakness. Conversely, only a sustained move above the Rs 42–44 zone would reinforce positive momentum and restore a stronger bullish undertone in the counter over the coming trading sessions."
Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, said, "Support is placed at Rs 38, while resistance is seen near Rs 42.5. A decisive move above Rs 42.5 could trigger a further upside towards Rs 45. The stock is expected to trade within the Rs 38-45 range in the short term."
Shares of Ola Electric Mobility Ltd fell sharply in Friday's trade, declining 9.48 per cent to hit a low of Rs 38.50. The fall came after the stock had gained in each of the previous four sessions. At last check, Ola Electric shares were trading 8.89 per cent lower at Rs 38.74.
Despite Friday's decline, the stock has gained 62.36 per cent over the past six months.
Ola Electric recently informed the stock exchanges that its Board of Directors will meet on Monday, September 28, 2026, to consider, among other matters, a proposal to raise funds through a rights issue of equity shares.
"The rights issue route is being considered to enable participation by all eligible shareholders including retail, institutional and promoter group, subject to applicable laws," the company said in its exchange filing.
The proposed fundraise will be subject to such regulatory and statutory approvals as may be required, the company added.
A rights issue is an offer of additional shares made by a company to its existing eligible shareholders. The terms, size and other details of Ola Electric's proposed issue will be subject to the Board's consideration and approval.
At the end of last month, the EV maker opened bookings for its S1Z electric scooter range, with prices starting at Rs 79,999. The company has positioned the S1Z as its most accessible scooter range.
Ola Electric CEO Bhavish Aggarwal said the S1Z is the company's first scooter range powered by its indigenous Bharat Cell LFP technology. According to the company, the cells have been developed at its Battery Innovation Centre and are manufactured at its Gigafactory in Tamil Nadu.
"The S1Z is the first scooter range in India powered by our indigenous Bharat Cell LFP technology, developed at our Battery Innovation Centre, and manufactured at our Gigafactory in Tamil Nadu. Our cells are fully built by Ola, with 426 patents to back them. This is the beginning of a new era in electric vehicles with LFP cells, that will address the largest segment of this market," Aggarwal said.
He added that battery costs account for a significant portion of an EV's overall cost and said Ola Electric's in-house LFP cell manufacturing would help reduce this cost. The company claims the S1Z offers a range of up to 301 km under IDC testing.
Kranthi Bathini, Equity Strategist at WealthMills Securities, noted that the stock has been witnessing sharp swings recently. "The company's ability to improve revenue and profitability would remain important for its medium- to long-term prospects. Ola Electric remains a calculated risk at present. The key is to see how the company improves its revenue parameters and profitability, which will be crucial for its medium- to long-term prospects. Investors with a high-risk appetite can continue to hold the stock," he also said.
Osho Krishan, Chief Manager – Technical & Derivative Research at Angel One, stated, "Ola Electric declined today following gains in recent sessions. From a technical perspective, the Rs 36–35 range is expected to cushion near-term weakness. Conversely, only a sustained move above the Rs 42–44 zone would reinforce positive momentum and restore a stronger bullish undertone in the counter over the coming trading sessions."
Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, said, "Support is placed at Rs 38, while resistance is seen near Rs 42.5. A decisive move above Rs 42.5 could trigger a further upside towards Rs 45. The stock is expected to trade within the Rs 38-45 range in the short term."