- Ola Electric used promoter share sale proceeds to fully repay promoter-level debt
- The repayment included principal, interest, and related charges from the monetisation
- Promoter share pledges of about 3.93% were fully released, reducing pledge to zero
Ola Electric Mobility Ltd. has utilised the proceeds from a one-time, limited monetisation of a portion of the promoter's personal shareholding to fully repay promoter-level debt, the company said in a press release.
The Bengaluru-based electric vehicle maker confirmed that the proceeds from the transaction were used towards repayment of debt, along with associated interest and charges. The remaining amount will be used to pay applicable taxes linked to the transaction in due course, the company said in an exchange filing. Following the repayment, all promoter-level share pledges aggregating to around 3.93% of Ola Electric's total equity have been fully released, bringing the promoter pledge in the company to zero.
Ola Electric had earlier, on Dec. 18, disclosed the completion of the monetisation exercise, which was undertaken to repay a promoter-level loan of approximately Rs 260 crore.
The company clarified that the transaction was a planned, time-bound exercise, executed entirely at the promoter's personal level and carried out in tranches.
Post completion of the transaction, the promoter group continues to hold about 34.6% in Ola Electric. The company noted that this remains among the highest levels of promoter ownership across new-age listed companies, underscoring the founder's continued commitment to the business.
Ola Electric emphasised that the stake monetisation does not involve any dilution of promoter control and reflects no change in the founder's long-term conviction in the company. It also clarified that the transaction has no impact on the company's operations, governance framework or strategic direction.
The stated objective of the exercise was to eliminate promoter-level leverage and remove any pledge-related overhang. Such pledges, the company noted, can introduce avoidable risk and volatility, particularly for recently listed companies, and their removal strengthens the company's overall financial and ownership structure.
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