Ola Electric shares hit 12-week high, rise 6%; here's why 

Shares of Ola Electric Mobility Ltd rose over 6% to their highest in 12 weeks on Thursday after the firm said it was seeking Board approval for a proposed rights issue of equity shares. Ola Electric Mobility shares were up 6.12% at Rs 44.50 after the electric two-wheeler maker said it was seeking board approval for a proposed rights issue of equity shares. The board of the company will meet on September 28 to discuss the proposal.

With today's move, the stock has risen for the fourth straight day. The trading volume of stock stood at 3.4 times the three-month daily average.

Despite today's move, the Ola electric stock is still down 27% from the 52 week high.

"Ola Electric today informed the stock exchanges that it is seeking Board approval for a proposed 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," said the firm.

Ola Electric share price target

Laxmikant Shukla, Technical Research Analyst at YES Securities has a buy call on the Ola Electric stock with a target Price of Rs 50. Stop Loss can be fixed at Rs 35.

"Ola Electric has broken convincingly above its 100 SMA, turning that previous resistance into a supportive platform for further gains. Trading strength across all key moving averages reinforces the bullish sentiment. The chart structure suggests the uptrend should continue with the next target near Rs 50. Buying on pullbacks toward Rs 39 to Rs 40 while keeping a stop loss under Rs 35 can help preserve an attractive risk-reward setup as the broader trend remains positive," said Shukla.

Ola raised Rs 780 crore in June 

In early June this year, Ola Electric Mobility raised about Rs 780 crore through a qualified institutions placement (QIP), exceeding its earlier fundraising plan of Rs 500 crore.

The company has completed the allotment of 21.76 crore equity shares to eligible qualified institutional buyers (QIBs) at an issue price of Rs 35.86 per share, according to a regulatory filing with the stock exchanges.

The qualified institutional placement (QIP) attracted participation from several prominent institutional investors, including Goldman Sachs, BNP Climate Fund, Motilal Oswal Mutual Fund, Mirae Asset Mutual Fund, Kotak Mahindra Mutual Fund, JM Financial Mutual Fund and Baroda BNP Paribas Mutual Fund, among others.

The issue price represented a discount of 4.98 per cent, or Rs 1.88 per share, to the Securities and Exchange Board of India (SEBI)-determined floor price of Rs 37.74 per share.