SoftBank sells rights entitlements as Ola Electric starts fundraise

SoftBank sold nearly 28 percent of its Ola Electric rights entitlements across two trading sessions. The move comes as the electric vehicle maker launched a rights issue to raise Rs 1,000 crore. At the same time, entities linked to Motilal Oswal applied for 2.39 crore shares in the company. These financial steps take place as Ola Electric faces declining revenue and persistent losses.

Context

Rights issues allow existing shareholders to buy extra shares in a company at a set price, helping the business raise fresh funds from current investors. Companies often turn to such funding rounds when they face financial pressures like dropping revenues and ongoing losses.