Ola Electric shares in focus today on plan to raise funds

Shares of Ola Electric Mobility are in news today as the e-vehicle firm is looking to raise funds amid a downturn in stock performance. Ola Electric shares ended 0.82% higher at Rs 52.56 on Monday against the previous close of Rs 52.13 on BSE. Market cap of the firm rose to Rs 23,183 crore. Total 42.42 lakh shares of the firm changed hands amounting to a turnover of Rs 22.61 crore on BSE. 

In terms of technicals, the relative strength index (RSI) of Ola Electric stands at 56.5, signaling the stock is neither overbought nor oversold on charts. Ola Electric shares are trading higher than the 5 day, 10 day, 20 day, 50 day but lower than the 100 day and 150 day moving averages.        

The board of directors at the Bengaluru-based electric vehicle manufacturer is scheduled to meet on Thursday to discuss a proposal for raising capital through non-convertible debentures or alternative instruments, potentially in multiple tranches through private placements. 

"We wish to inform you that the meeting of the Board of Directors of Ola Electric Mobility Limited (“the Company”) is scheduled to be held on Thursday, May 22, 2025, inter alia, to consider and approve the proposal for raising funds, by way of issuance of Non-Convertible Debentures (NCDs) or any other eligible securities, in one or more tranches, on a private placement basis or such other methods, as may be permitted under applicable laws," said Ola Electric. 

This decision comes as the company’s stock has remained below its IPO price of Rs 76 per share since January 22. Factors such as declining market share, diminished demand for its electric two-wheelers, and various regulatory challenges—including issues related to misreported sales and numerous stores operating without the necessary documentation—have contributed to this situation.