Ola Electric Clears Rs 1,000 Crore Rights Issue at Rs 27 Per Share

Ola Electric Mobility has approved a rights issue worth nearly Rs 1,000 crore, with shares priced at Rs 27 each. The board cleared the issuance of 37.03 crore rights equity shares totaling Rs 999.74 crore, assuming full subscription. The price includes a face value of Rs 10 and a premium of Rs 17. Investors will pay Rs 16.20 per share on application, while the remaining Rs 10.80 is payable through a first and final call expected by October 31, 2027. Eligible shareholders will get two rights shares for every 25 fully paid-up shares held on the record date of October 13, 2026. The rights issue opens on October 22 and closes on October 30, 2026, with the last date for on-market renunciation set for October 26. The company currently has 462.84 crore outstanding shares, which will rise to 499.87 crore if fully subscribed. According to The Economic Times, Chairman Bhavish Aggarwal plans to fully subscribe to his portion using a pledged stake, and the funds could help ease debt and aid the firm in reaching cash breakeven.

Context

A rights issue is a way for a listed company to raise fresh capital by giving existing shareholders the right to buy additional shares at a discounted price in proportion to their current holdings. Companies often use such fundraises to strengthen their balance sheet, support ongoing business operations, or reduce debt liabilities.