Ola Electric’s ₹1,000-crore rights issue fully subscribed ahead of deadline; here’s how auto stock reacted
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Ola Electric Mobility’s ₹1,000-crore rights issue was fully subscribed on Wednesday, two days before the October 30 closing date, with founder Bhavish Aggarwal also participating in the offering. The issue, which opened on October 22, received bids for 37.14 crore shares against 37.03 crore shares on offer as of October 28, according to reports.
Despite the positive development, Ola Electric shares declined as much as 4.2% to ₹35.13 on the BSE, taking its market capitalisation to ₹17,710 crore. Over the previous two sessions, the auto stock had risen 22.55%, gaining 16.77% on Tuesday and another 4.95% on Wednesday.
Bhavish Aggarwal participates in rights issue
Aggarwal has participated in the rights issue. His direct stake in the electric two-wheeler maker stands at around 26.5%, while the promoters’ combined holding is 32.9%.
According to a Moneycontrol report, Aggarwal, the chairman and managing director of the two-wheeler EV company, is financing his participation through a ₹175-crore borrowing raised by Krutrim Data Centre Pvt Ltd, a promoter-group entity associated with his family office. The debt carries an interest rate of 17.15% and is secured by a pledge of his Ola Electric shares and a personal guarantee, the report said, citing regulatory filings and debt records.
On September 30, Krutrim Data Centre issued non-convertible debentures (NCDs) worth ₹150 crore to InCred Special Opportunities Fund I and ₹25 crore to Avendus Finance. The company issued 1,750 debentures with a face value of ₹10 lakh each.
According to its filings, the proceeds will be used, directly or indirectly, to repay borrowings extended to Aggarwal, besides meeting general corporate requirements and other purposes. Incorporated in October 2024, Krutrim Data Centre is wholly owned by Krutrim AI Designs LLP and forms part of Aggarwal’s family office. It is a separate entity from his artificial intelligence venture, Krutrim.
Ola Electric had disclosed on October 4 that Aggarwal pledged 20 crore shares, equivalent to a 4.32% stake in the company, to support the financing and his participation in the rights issue.
At the issue price of ₹27 per share, his 26.52% holding entitles him to approximately 9.82 crore rights shares, requiring an investment of around ₹265 crore, according to the report.
The rights issue comes as Ola Electric shifts from its direct-to-consumer (D2C) sales model to a dealer-led distribution network. The transition is aimed at strengthening sales momentum and improving service execution, an area that has weighed on customer sentiment towards the company.
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