Ola Electric shares fall 4% post Rs 1,000-crore rights issue proposal; check details

Ola Electric Mobility Ltd shares fell 4% on Thursday after the electric two-wheeler maker proposed a rights issue of up to 37,02,72,665 partly paid-up equity shares at an issue price of Rs 27 per share, aggregating up to Rs 999.74 crore. The issue will be offered to eligible shareholders in the ratio of two rights equity shares for every 25 fully paid-up equity shares held on the record date of October 13, 2026.

The company said investors will have to pay Rs 16.20 per rights equity share, or 60% of the issue price, at the time of application. The remaining Rs 10.80 per share, or 40%, will be payable through the first and final call, which is expected to be completed on or before October 31, 2027.

Ola Electric shares touched a low of Rs 35.01, down 3.55% from the previous close of Rs 36.30. The stock opened at Rs 36 and also touched a high of Rs 36.

The rights issue will open on October 22, 2026 and close on October 30, 2026. The company has received in-principle approvals from BSE and NSE for listing the rights equity shares, while the record date has been set as October 13.

Ola Electric's promoter Bhavish Aggarwal has confirmed that he will subscribe to the full extent of his rights entitlement and will not renounce it, except for permitted renunciations within the promoter group or to specific investors. He may also subscribe to additional equity shares or any shares left unsubscribed in the issue, subject to applicable minimum public shareholding requirements.

The company said the rights issue proceeds will be used towards repayment or pre-payment of certain outstanding borrowings, interest and prepayment penalties, organic growth initiatives and general corporate purposes.