Ola Electric has closed its qualified institutional placement (QIP) fund raise, approving the allotment of 21.75 Cr equity shares at an issue price of ₹35.86 per share
This implies a fund raise of ₹780.2 Cr
Ola Electric opened its QIP on June 1, setting a floor price of ₹37.74 for the issue
Electric vehicle (EV) maker Ola Electric
has completed its qualified institutional placement (QIP), raising ₹780.24 Cr by issuing 21.75 Cr equity shares at an issue price of ₹35.86 apiece. The issue received an oversubscription of 56%.
The issue price is about 5% lower than the floor price of ₹37.74 announced when the company launched the QIP on June 1.
The company’s fund-raising committee approved the allotment of 21.75 Cr equity shares under the issue. Following the allotment, Ola Electric’s paid-up equity share capital will increase to 462.84 Cr shares from 441.08 Cr shares earlier.
Investors like Goldman Sachs, Motilal Oswal, Mirae Asset Management, JM Financial, Societe Generale, among others, lapped up shares in the EV company.
The fundraising forms part of the company’s broader plan to raise up to ₹1,500 Cr through various routes. Ola Electric’s board had approved the proposal in October last year, following which shareholders also cleared the plan.
According to the placement document, Ola Electric plans to use ₹225 Cr from the proceeds towards repayment or prepayment of borrowings availed by the company and its material subsidiaries.
Another ₹335 Cr has been earmarked for organic growth initiatives, while ₹184.87 Cr will be used for general corporate purposes. After deducting issue-related expenses of about ₹35.37 Cr, Ola Electric expects net proceeds of ₹744.87 Cr from the QIP.
The company said the fresh capital will help strengthen its balance sheet and support future growth plans.
As of May 20, 2026, Ola Electric and its subsidiaries had sanctioned borrowings worth ₹2,520 Cr, with outstanding debt of ₹1,637.61 Cr.
The company said reducing debt could improve its debt-equity ratio and enhance its ability to raise capital at more competitive rates in future. In its placement document, Ola Electric estimated that its debt-to-equity ratio would improve to 0.60x from 0.74x after the issue.
It also plans to invest in manufacturing, R&D, supply chain operations, retail expansion, service infrastructure and customer acquisition. Besides, further investments in the Ola Futurefactory, Ola Gigafactory, lithium-ion cell manufacturing operations and in-house technology development are also expected to continue.
The QIP comes at a time when Ola Electric is trying to improve its financial position amid intense competition in India’s electric two-wheeler market.
In FY26, the company narrowed its net loss by nearly 20% to ₹1,833 Cr from ₹2,276 Cr in the previous year. However, operating revenue almost halved to ₹2,460 Cr from ₹4,932 Cr in FY25.
Ola Electric has increasingly highlighted battery cell manufacturing, battery energy storage systems and its electric motorcycle portfolio as key growth areas. In its placement document, the company described itself as a vertically integrated energy and mobility platform spanning electric vehicles, lithium-ion cells and battery energy storage systems.
The share sale will also result in a dilution of promoter holding. Promoter and promoter group ownership will decline to 32.97% post issue from 34.59% before the QIP, while institutional investor shareholding will increase to 16.42% from 12.30%.
Shares of Ola Electric ended today’s trading session 1.25% lower at ₹43.29 on the BSE.
Source: Inc42 - Startups
