Ola Electric Mobility has raised Rs 780 crore through a qualified institutional placement (QIP) that was oversubscribed 56%, driven by strong participation from domestic and global institutional investors, according to stock exchange data.

The issue drew bids worth about Rs 780 crore, with long-only investors including Goldman Sachs and BNP Climate Fund, alongside Indian mutual funds such as Motilal Oswal Mutual Fund, Mirae Asset Mutual Fund, Kotak Mahindra Mutual Fund, JM Financial Mutual Fund and Baroda BNP Paribas Mutual Fund, among others.

Institutional conviction holds despite volatile EV sentiment

The strong response came even as broader equity markets remained volatile, signalling that institutional investors continue to maintain exposure to India’s electric mobility transition despite near-term sector headwinds.

The QIP was launched at an indicative price of Rs 35.86 per share, while the stock closed at Rs 43.06 on the National Stock Exchange on Thursday, above both the indicative price and the regulatory floor of Rs 37.74.

The fundraise is expected to support expansion across electric mobility, battery technology development, manufacturing scale-up and product innovation, while also strengthening the company’s balance sheet and institutional shareholder base, according to the company

Financial performance under scrutiny amid margin pressure

The fundraising comes against the backdrop of weak financial performance in recent quarters. In the most recent reported quarter (Q1 FY26), Ola Electric posted a widened net loss of Rs 428 crore, even as revenue declined sequentially amid softer electric two-wheeler demand and pricing pressure in a highly competitive market.

For the full financial year FY25, the company had reported a consolidated net loss of around Rs 1,600 crore, reflecting continued investments in manufacturing scale-up, battery localisation and product development, alongside operating cost pressures as it expanded its distribution footprint.

Stock under pressure after sharp valuation reset

Despite the QIP success, Ola Electric shares continue to trade well below their post-listing highs, reflecting a sustained valuation reset. As of the latest close, the stock was around Rs 43 on the NSE, sharply lower than its peak levels seen in the initial post-listing rally.

Market participants have attributed the correction to concerns over execution timelines, profitability visibility, and intensifying competition in the electric two-wheeler space. The stock has also seen intermittent selling pressure as investors reassess near-term growth expectations in the EV segment after early enthusiasm cooled. (with Inputs from PTI)