Ola Electric Tech Raises Rs 400 Crore Via Preferential Allotment

Ola Electric Technologies Pvt. Ltd. board approved a fundraise of Rs 400 crore via prefertial issue of shares to Ola Cell Technologies Pvt. Ltd., a stock exchange filing said late Wednesday.

The company will issue Optionally Convertible Redeemable Preference Shares (OCRPS) having a nominal value of Rs 10 each. The investment is the first tranche of a total commitment of Rs 877.64 crore.

OET and OCT are fellow subsidiaries of Bhavish Aggarwal-led Ola Electric Mobility Ltd. The investment, being between fellow subsidiaries, qualifies as a related-party transaction but is being undertaken on an arm’s length basis, the parent firm said.

Ola Electric Tech is a private limited company incorporated in 2021 that is engaged in development and production of electric vehicles and core components including battery packs, motors and vehicle frames through vertically integrated operations.

It conducts in-house research and development and sales it products through a direct-to-consumer (D2C) network. The company reported a turnover of Rs 4,510 crore in FY25, compared to Rs 5,000 crore in FY24 and Rs 2,586 crore in FY23.

Ola Cell Technologies was incorporated in July 2022 and is setting up a lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu, which would act as a captive battery cell manufacturer for the Ola Group over the medium term. The company is doubling down on this project to localise battery cell production and reduce dependence on imports.

The company expects to fully utilise the 1.4 GWh capacity of its '4680 Bharat Cell' by the end of the current financial year, and install the remaining capacity to get to 5 GWh by FY27.

Shares of Ola Electric Mobility settled flat at Rs 52.62 on the BSE on Tuesday, ahead of the announcement, compared to a 0.2% advance in the benchmark Sensex. The stock has lost nearly 40% of its value so far this year.