Ola Electric shares rise 2% ahead of fundraise meet on September 5

Ola Electric Mobility Ltd shares rose 2 per cent in Thursday's trade as the company board would consider a proposal to raise funds on Saturday, September 5. The proposed fundraising could be through equity shares or other eligible securities via permissible modes, subject to regulatory approvals, Ola Electric told BSE and NSE.

The Ola stock opened at Rs 39.43 over its previous close of Rs 38.98 on BSE. It hit a high of Rs 39.69 apiece, up 1.82 per cent. The stock's rise came despite weakness in the broader auto sector, with the Nifty Auto index falling 0.29 per cent in morning trade.

The proposed fundraise could include a private placement, qualified institutions placement (QIP), preferential issue, or any other method or combination of methods permitted under applicable laws, Ola Electric said.

"The board meeting will also consider, inter alia, matters relating to the Annual Report of the Company for the financial year ended March 31, 2026 and matters relating to the ensuing Annual General Meeting of the company, along with other items as may be considered by the Board," Ola Electric said.

PLI incentive

The fundraise proposal comes shortly after Ola Electric said it had received a sanction order from the Ministry of Heavy Industries for the release of Rs 95.81 crore in incentives under the Production Linked Incentive Scheme for Automobile and Auto Components (PLI-Auto Scheme).

The sanction pertains to the Demand Incentive for FY27, with the payment to be released through IFCI Ltd, the Central Nodal Agency designated for disbursement under the scheme.

This marks the third consecutive year in which Ola Electric has received an incentive under the PLI-Auto Scheme. The company had received sanctions of Rs 73.74 crore for FY24 in March 2025 and Rs 366.78 crore for FY25 in December 2025.

Emkay Global, in an August note, said Ola Electric was taking measures to improve execution, cut costs and conserve cash, while also working to improve brand perception as service-related issues begin to resolve. However, the brokerage said the process could be difficult and long-drawn-out, given the increased focus from incumbent players and the scale-up at Ather.