Shares of Ola Electric Mobility rose 5% to trade at ₹37.25 apiece after it announced that it has received a sanction order from the Ministry of Heavy Industries for the release of incentives amounting to ₹366.78 crore under the production-linked incentive scheme for automobiles and auto components for claims about FY 2024-25.

The sanction pertains to the demand incentive for the determined sales value for FY 2024-25, and authorises a payment of the said amount to be released through IFCI Limited, the designated financial institution for disbursement under the scheme. 

"This milestone reinforces Ola Electric’s role as a key contributor to India’s advanced automotive manufacturing ecosystem and reflects the company’s strong execution across scale, localisation, and technology-led vertically integrated manufacturing," the statement said.

Commenting on the development, an Ola Electric spokesperson said, “This incentive recognises our sustained efforts in scaling domestic production, deepening localisation, and driving innovation across the electric mobility value chain. We remain committed to supporting the Government of India’s vision of making India a global hub for advanced automotive manufacturing and clean mobility.”

The PLI-auto scheme is a flagship initiative of the Government of India aimed at strengthening domestic manufacturing, encouraging advanced automotive technologies, and enhancing India’s global competitiveness in the auto and auto components sector.

The electric two-wheeler stock rose 6.14% in the past week, but over a span of a month, the stock has declined 10.48%. On a year-to-date basis, Ola Electric shares have fallen drastically by 57.68%

Ola Electric was in the news after announcing that the promoter, Bhavish Aggarwal, completed the one-time, limited monetisation of a portion of his personal shareholding to repay a promoter-level loan of approximately ₹260 crore fully and to release all 3.93% shares previously pledged, thereby eliminating all promoter pledges. 

Following the transaction, the promoter group continues to hold over 34.5% in Ola Electric, with no dilution of promoter control or change in long-term commitment. “This was a planned, time-bound exercise executed entirely at the promoter’s personal level and has no impact on the company’s performance, operations, or strategic direction,” the statement read.