Ola Electric Mobility's board has approved a significant fundraising move by issuing partly paid-up equity shares worth nearly ₹1,000 crore. This rights issue aims to raise ₹999.74 crore by offering 37.03 crore shares at ₹27 each, including a premium of ₹17 per share. The decision was made during the board meeting held on September 28, 2026.
- The rights issue offers 2 rights equity shares for every 25 fully paid-up shares held.
- Record date for eligibility is set for October 13, 2026.
- The issue will open on October 22 and close on October 30, 2026.
- Shareholders can renounce their rights on the market until October 26, 2026.
What is the purpose of Ola Electric Mobility's rights issue?
The rights issue is a way for Ola Electric Mobility to raise funds from its existing shareholders. By issuing partly paid-up shares, the company can secure capital to support its operations and growth plans without taking on debt. This method allows shareholders to maintain their ownership proportion if they choose to participate.
How will the rights issue affect existing shareholders?
Existing shareholders eligible as of the record date, October 13, 2026, will receive rights entitlements. For every 25 fully paid-up shares they hold, they can buy 2 additional partly paid-up shares at ₹27 each. Shareholders who do not wish to subscribe can sell their rights on the market before October 26, 2026, allowing others to purchase them.
What are the recent financial highlights of Ola Electric Mobility?
In the first quarter of the financial year 2026-27, Ola Electric Mobility reported a consolidated net loss of ₹336 crore, an improvement from ₹428 crore in the same quarter the previous year. Sequentially, losses narrowed from ₹500 crore in the previous quarter. However, revenue from core operations declined 45% year-on-year to ₹455 crore, down from ₹828 crore. Total expenses also decreased by 42% to ₹620 crore.
How has Ola Electric Mobility's stock performed recently?
Ola Electric shares closed at ₹36.32 on the National Stock Exchange on October 7, 2026, showing a 1% increase. The stock reached a 52-week high of ₹57.95 on October 17, 2025, and a low of ₹22.25 on March 16, 2026. As of September 7, 2026, the company's market capitalization stood at ₹16,810.38 crore.
Frequently Asked Questions
Q: What is a rights issue?
A rights issue is a way for companies to raise capital by offering existing shareholders the right to buy additional shares at a discounted price before the shares are offered to the public.
Q: What does 'partly paid-up equity shares' mean?
Partly paid-up shares are shares where the shareholder pays only a part of the total share price upfront, with the remaining amount payable later as decided by the company.
Q: Why is the record date important?
The record date determines which shareholders are eligible to receive rights entitlements in the rights issue.
Q: Can shareholders sell their rights?
Yes, shareholders can sell their rights on the market before the renunciation deadline, allowing others to purchase those rights.
