Ola Electric seeks board approval for proposed rights issue

As per the latest business developments, Ola Electric Mobility will consider raising funds through a rights offering of equity shares at a board meeting on September 28, the e-scooter maker stated on Wednesday.

In an exchange filing, Ola Electric stated, “Ola Electric today informed the bourses that it is seeking Board approval for a proposed rights offering of equity shares. The rights offering route is being considered to enable participation by all eligible shareholders including retail, institutional and promoter group, subject to applicable laws.”

The firm stated the Board of Directors will meet on Monday, September 28, 2026, to consider the proposal to mobilize funds through a rights offering of equity shares, subject to the required regulatory and statutory approvals.

Ola Electric had received an earlier enablement to mobilize up to Rs 1,500 crore, of which Rs 780 crore was boosted through the June 2026 QIP (qualified institutional placement), and the firm has subsequently chosen the rights offering route for its capital raise, with this proposal pending board approval.

The proposed capital raise could put the firm on the path to cash breakeven without further funding in the near future, stated a banking source tracking the development.

Ola's promoter group, led by Chairman and Managing Director Bhavish Aggarwal, which together holds around 32.97 per cent in the firm, is additionally anticipated to participate in the proposed rights offering, the source cited earlier further noted.