Ola Electric Mobility Ltd announced on Friday that its board has approved a combined investment of Rs 2,000 crore into two of its key wholly-owned subsidiaries to bolster its electric vehicle (EV) and battery manufacturing capabilities. The investment will be split between Ola Cell Technologies Private Limited (OCT) and Ola Electric Technologies Private Limited (OET), both of which are central to the company's vertically integrated EV ecosystem, according to a stock exchange filing.
The capital infusion will be executed through the subscription of Compulsory Convertible Preference Shares (CCPS) at par value. The primary objective of the funding is to support the business requirements of both subsidiaries as they scale operations. The investments are expected to be completed within one year, with a deadline set for May 14, 2027.
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Breakdown of Investment:
Ola Electric Technologies (OET): The board approved an investment of Rs 1,500 crore. OET, which handles the manufacturing and supply of electric vehicles and services across the EV value chain, reported a turnover of Rs 4,717.48 crore for the 2024-25 fiscal year.
Ola Cell Technologies (OCT): The board approved an investment of Rs 500 crore. OCT is dedicated to the manufacturing, assembly, and distribution of batteries and cells. The subsidiary has seen rapid growth, with its turnover jumping from just Rs 3.97 crore in FY 2023-24 to Rs 73 crore in FY 2024-25.
The company confirmed that both transactions are being conducted on an "arm's length" basis. Following these investments, Ola Electric Mobility will continue to maintain 100% control over both entities. This move underscores Ola Electric's commitment to securing its supply chain, particularly in cell manufacturing, as it seeks to strengthen its leadership in the Indian electric two-wheeler market. Shares settled 1% lower at Rs 35.64 apiece on the NSE.
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