Electric vehicles maker Ola Electric gets board approval to raise Rs 1,500 crore

Electric vehicle (EV) maker Ola Electric Mobility Limited has approved a proposal to raise up to Rs 1,500 crore through a mix of equity shares and convertible securities, the company said in a stock exchange filing.

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The fundraise, which was cleared by the company’s board on October 25, 2025, may be executed via one or more routes, including a further public offer, rights issue, qualified institutional placement (QIP), or private placement. The issuance price, timing, and structure will be decided later by the board, subject to shareholder approval and necessary regulatory clearances.

Ola Electric said the fundraising plan would help the company strengthen its balance sheet and support ongoing operations. However, it did not disclose specific objectives for the capital raise.

The move comes a little over a year after the Bhavish Aggarwal-led company raised Rs 5,500 crore through a fresh issue as part of its initial public offering (IPO) in August 2024. At the time, the company said it was adequately funded for the next two years, backed by a cash balance of Rs 3,197 crore as of June 2025.

The latest decision follows months of turbulence for the EV manufacturer. Early investors such as SoftBank, Z47 (formerly Matrix Partners India), and Tiger Global have trimmed their holdings this year, while Ola Electric has also faced growing competition from Bajaj Auto and TVS Motor, which have overtaken it in monthly EV registrations.

In recent months, the company has been in the spotlight for other reasons too. It was drawn into controversy after an employee allegedly accused Aggarwal and a senior executive of harassment before dying by suicide, a claim the company has denied. Meanwhile, Ola Electric’s statutory auditors, in their FY25 report, highlighted a “material weakness” in inventory verification at one of its subsidiaries, though the company later clarified that it related to an isolated case.

Financially, Ola Electric’s performance has been under pressure. Its consolidated net loss widened 23.3% year-on-year to Rs 428 crore in the first quarter of FY26, while revenue from operations fell nearly 50% to Rs 828 crore from Rs 1,644 crore in the same period last year.