Ola Electric has launched its qualified institutional placement (QIP) to bolster its position in the E2W market
The company has set a floor price of ₹37.74 for its QIP, a discount of 4.53% from its closing price of ₹39.53
Ola Electric plans to utilise a portion of the net proceeds from the issue to repay or prepay existing borrowings taken by both the parent entity and its material subsidiaries
Ola Electric
has launched its qualified institutional placement (QIP) to bolster its position in the E2W market.
The company has set a floor price of ₹37.74 for its QIP, a discount of 4.53% from its closing price today.
Further, the company may offer a discount of up to 5% on the floor price, with the final issue price to be determined in consultation with the book-running lead managers.
While the company didn’t share the exact amount it bids to raise from the issue, its board had earlier approved a proposal to raise ₹1,500 Cr via various routes, including QIP. The board approval, which came back in October, was subsequently approved by the company’s shareholders.
In its recent Q4 FY26 financial disclosures, the company’s auditors revealed a key update on the company’s QIP plans. The company had initiated active discussions with institutional investors and “substantially completed the investor engagement” and appointed advisors for the QIP during the March quarter.
Ola Electric plans to utilise a portion of the net proceeds from the issue to repay or prepay existing borrowings taken by both the parent entity and its material subsidiaries. These borrowings include term loans and working capital facilities availed from banks.
As per its QIP disclosure, Ola Electric and its material subsidiaries had sanctioned loans worth ₹2,520 Cr till May 20, 2026. The outstanding amount currently stands at ₹1,637.61 Cr.
While the listed company has raised debt from venture debt firms like EvolutionX, Stride Ventures and Alteria Capital, its material subsidiaries have raised funds from banks like Bank of Baroda, Axis Bank, Indian Bank and Yes Bank.
The company stated that reducing debt is expected to strengthen its balance sheet by lowering outstanding liabilities and improving its debt-equity ratio.
“In addition, we believe that our debt equity ratio will improve, which will enable us to raise additional funds/ capital at competitive rates in the future to fund potential business development opportunities and plans to grow and expand our business in the future,” the company said.
Besides debt repayment, the EV major also intends to utilise a chunk of the QIP proceeds to scale its vertically integrated EV and energy storage business across manufacturing, R&D, supply chain, stores, service centres, and customer acquisition.
It aims to strengthen its E2W, lithium-ion cell, and residential battery storage operations through investments in the Ola Futurefactory, Ola Gigafactory, and in-house tech development.
The fresh capital raise comes at a critical juncture for Ola Electric. While the company remains one of India’s largest E2W manufacturers, it continues to grapple with losses and intense competition.
For FY26, the company managed to narrow its net loss by nearly 20% to ₹1,833 Cr from ₹2,276 Cr in the previous fiscal.
However, operating revenue more than halved to ₹2,460 Cr from ₹4,932 Cr in FY25 as vehicle deliveries came under pressure amid service-related challenges and weak consumer demand.
In his shareholder communication for Q4 FY26, managing director and MD Bhavish Aggarwal told shareholders that the company is now shifting from a “heavy build-out” phase to a “disciplined scale-up” phase after achieving its first operating cash-flow-positive quarter in Q4 and significantly reducing operating expenses.
Now, he expects Ola Electric’s Gigafactory and its in-house 4680 Bharat Cells to become a major long-term advantage for the company. The cells, which the company began deploying in its vehicles recently, improves the vehicles’ range while reducing the overall costs.
Buoyed by the Gigafactory, Aggarwal highlighted energy storage as the company’s next major growth opportunity, with Shakti and Mahashakti targeting residential, commercial, and utility-scale battery storage demand alongside EV adoption.
He added that Ola is seeing early signs of recovery in demand, with improving service metrics, and rising registrations as well as increasing traction for its Roadster electric motorcycle portfolio.
It is pertinent to note that Ola Electric’s sales have seen significant improvements over the past few months. In the month of April, Ola Electric’s E2W registrations jumped 22% to 15,139 units. The EV maker’s market share also improved to around 9%.
Shares of Ola Electric ended today’s trading session 4.91% lower at ₹39.53 on the BSE.
Source: Inc42 - Startups
