- Ola Electric's Board approved a rights issue of equity shares up to Rs 1,000 crore
- Details on record date, issue period, and price will be decided later
- Chairman Bhavish Aggarwal will subscribe to his rights and limit renunciation
Ola Electric on Monday said in a regulatory filing that its Board has approved a rights issue of equity shares of up to Rs 1,000 crore. Further details, including the record date, issue period and issue price, will be decided subsequently.
As per the Draft Letter of Offer available on the company website, Bhavish Aggarwal, Chairman and Managing Director, has confirmed he will subscribe to his rights entitlement, and that any renunciation will only be within the promoter group or to specified investors. The promoter group together holds around 32.97 per cent in the company. Aggarwal may fund his participation by pledging part of his holding, sources tracking the development said, describing the move as a sign of "strong founder commitment" to the company.
The company had raised Rs 780 crore through a qualified institutional placement in June 2026. It said last week in a statement to PTI that the rights route was chosen to allow existing shareholders, including retail investors, to participate.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The Draft Letter of Offer said that about Rs 350 crore of the proceeds of the proposed rights issue will go towards repayment of debt and Rs 400 crore towards organic growth, with the balance for general corporate purposes. The debt reduction is expected to ease pressure on operating expenses and put the company on the path to cash breakeven, taking away any dependence on external capital, a banking source had earlier confirmed.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
