Ola Electric Slides 5% After Board Clears Fundraising Plan

Shares of EV maker Ola Electric tumbled nearly 5% during the intraday trading on the BSE today. On Saturday (October 25), the company’s board approved a proposal to raise INR 1500 Cr.

The stock fell to INR 50.26 on the BSE, closer to its lower circuit limit of INR 50.21. However, the shares recouped some of the losses and were trading 1.9% lower at INR 51.85 at 15:00 IST. The company’s market capitalisation stood at INR 22,870 Cr (about $2.5 Bn) at the time.

Notably, the stock ended in the red in three out of the last five sessions on the BSE.

Ola Electric’s fresh fundraising plans come over a year after it raised INR 5,500 Cr via the fresh issue through its IPO in August last year.

The company said that it would raise the fresh INR 1,500 Cr via issuance of equity shares and/ or convertible securities through further public offer, rights issue, qualified institutional placement, private placement, and more modes. However, the company didn’t disclose how it intends to use the capital.

In May this year, Ola Electric’s board also approved a proposal to raise up to INR 1,700 Cr debtvia NCDs, term loans, working capital facilities, or any other eligible debt securities.

Notably, Ola Electric, in its Q1 FY26 shareholders’ report, said it was “well funded for this year and the next” due to its INR 3,197 Cr cash balance at the end of June 2025.

Ola Electric has been struggling with rising losses and decline in its market share in the two-wheeler EV market. Its consolidated net loss widened 23.3% to INR 428 Cr in Q1 from INR 347 Cr in the year-ago period. Operating revenue nearly halved to INR 828 Cr during the quarter from INR 1,644 Cr in Q1 FY25.

Ola Electric slipped to the fourth position in terms of electric two-wheeler registrations in September, with Ather Energy overtaking the Bhavish Aggarwal-led company. Ola Electric’s registrations dropped to 12,223 units in September from 19,020in August.

Amid all these, the company announced its foray into the residential battery energy storage system (BESS) segment with the launch of Ola Shakti earlier this month.

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