Ola Electric shares dip despite ₹1,700 cr funding plan

Shares of electric two-wheeler manufacturer Ola Electric Mobility remained in focus today after it received its board's approval to raise funds via debt instruments. In an exchange filing last evening, the Bhavish Aggarwal-led EV company said its board approved a proposal to raise up to ₹1,700 crore through the issuance of non-convertible debentures (NCDs) or other debt securities. The company, however, didn’t disclose the objective of the fundraising.

Despite this positive development, Ola Electric shares opened marginally higher by 0.9% at ₹51.97 against the previous closing price of ₹51.50 on the BSE. The stock, however, soon lost momentum and slipped in the red, falling 0.75% to ₹51.11. The stock has fallen as much as 1.65% from the opening level, while its market capitalisation has slipped to ₹22,627 crore.

Ola Electric shares touched their 52-week high of ₹157.53 on August 20, 2024, and a 52-week low of ₹45.55 on April 7, 2025. The stock, which debuted at ₹76 in August 2024, trades 31% below its IPO price. In calendar year 2025, the stock has fallen over 40%, while it lost 26% in six months, and 2% in a month.

In the exchange filing, Ola Electric said that its board had approved the proposal to raise capital by issuance of NCDs or any other eligible debt securities, in one or more tranches, on a private placement basis. The company will also explore borrowing through term loans and working capital facilities.

“The Board of Directors of Ola Electric Mobility Limited, at its meeting held today, Thursday, May 22, 2025, has inter-alia, considered and approved the proposal of fund raising by borrowing funds within the borrowing limits approved by the shareholders of the Company, by way of: (i) term loans, working capital facilities; or (ii) issuance of Non-Convertible Debentures (NCDs) or any other eligible debt securities, in one or more tranches, on a private placement basis or such other methods, as may be permitted under applicable laws,” the release noted.

As per the company, issuance of securities up to ₹1,700 crore, in one or more tranches, will be conducted via private placement(s) or any other method as may be permitted under applicable laws.

In August last year, the Bengaluru-based company raised ₹6,146 crore via an IPO, which comprised a fresh issue of ₹5,500 crore and an offer for sale (OFS) of ₹646 crore by promoters and existing shareholders.

Established in 2017, Ola Electric, a wholly-owned subsidiary of ANI Technologies—the parent entity of Ola Cabs—intended to use capital raised from fresh equities for capital expenditure to be incurred by the subsidiary Ola Cell Technologies for the gigafactory project and repayment of debt incurred by the subsidiary Ola Electric Technologies. A part of the capital was proposed to be used for investment into research and product development, funding organic growth initiatives, and general corporate purposes.

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