Ola Electric founder repays ₹260 crore loan, releases all pledged shares

Ola Electric’s founder-promoter has carried out a one-time and limited monetisation of a small part of his personal shareholding to repay a promoter-level loan of ₹260 crore fully, the company said via statement issued on December 16, 2025.

As a result of this move, all previously pledged shares, which were around 3.93% of the company’s equity, will now be released. According to the company's statement, this removes a key overhang that could have created uncertainty for investors.

Following the transaction, the promoter group will continue to hold about 34% stake in Ola Electric. This remains one of the highest promoter holdings among new-age companies listed in India. The company said there is no dilution of promoter control and no change in the founder’s long-term commitment to the business.

The decision has been taken to eliminate all promoter pledges, which are often seen by the market as a source of avoidable risk and price volatility.

"It is part of the founder's conviction that Ola Electric should operate with zero pledge overhang, and he should fully unwind the leverage," per the statement.

Pledged shares can raise concerns during periods of market stress, especially if share prices fall sharply. By fully unwinding the leverage at the promoter level, the founder aims to ensure that Ola Electric operates without any such overhang.

The company said this step reflects the founder’s conviction that a zero-pledge structure is in the best interest of long-term shareholders. “The intention is to fully unwind promoter-level leverage and remove any perceived risk linked to pledged shares,” the company said in a statement.

Importantly, the transaction has been executed entirely at the promoter’s personal level. Ola Electric said there will be no impact on its operations, financial position, governance practices or strategic direction as a result of this move. The repayment does not involve the company’s cash flows or balance sheet.

Ola Electric added that its focus remains unchanged. The company continues to concentrate on building a globally competitive, India-first electric mobility and clean energy business. It is currently working on scaling manufacturing, strengthening its electric two-wheeler portfolio, and expanding its presence in energy storage and related technologies.

"The transaction is being executed entirely at the promoter’s personal level and would have no impact on Ola Electric’s operations, governance, or strategic direction. The company’s focus remains firmly on building a globally competitive, India-first electric mobility and clean energy company," per the statement.

Analysts say that with this step, Ola Electric joins a growing list of companies where promoters have sought to clean up their shareholding structures to reassure investors and reinforce long-term stability.