Ola Electric board approves Rs 1,700 crore debt fundraise, first since IPO

Bhavish Aggarwal-led EV giant Ola Electric Mobility Ltd said that its board has approved a proposal to raise up to Rs 1,700 crore through the issuance of non-convertible debentures (NCDs) or other eligible debt instruments. The funds will be raised in one or more tranches, the company said in a regulatory disclosure.

The board’s resolution, passed on May 22, authorises Ola Electric to raise the funds through private placements or other permissible methods, in line with borrowing limits already approved by shareholders.

The fundraising will be structured based on prevailing market conditions and capital needs, and may include term loans, working capital facilities, or other forms of debt.

First fundraising since IPO, but under challenging circumstances

This marks the first capital raise by Ola Electric since its initial public offering (IPO) in August 2024, and comes at a time when the company is under mounting operational and regulatory pressure.

The company’s share price has dipped sharply since listing, closing at Rs 52.91 on Friday, significantly below its IPO price of Rs 76 per share. Meanwhile, rising losses, slowing sales, and regulatory action have clouded its near-term outlook.

For the October–December 2024 quarter, Ola Electric reported a 50% year-on-year increase in net loss to Rs 564 crore, while operating revenue declined by 19%. The company is yet to announce its Q4FY25 results.

Maharashtra crackdown on retail outlets

The fundraising announcement coincides with a major enforcement action in Maharashtra, where the state Transport Department ordered the closure of over 100 Ola Electric showrooms for operating without mandatory trade certificates.

According to a directive from the Joint Transport Commissioner, 107 of the company’s 131 showrooms in the state were non-compliant, with only 43 shut down so far and 214 vehicles seized.

Market share slips amid sales discrepancies

Once a market leader in the EV two-wheeler space, Ola Electric lost its top position to TVS Motor in April 2025, according to data from the government’s Vahan portal. The company registered 19,709 vehicles last month, a 42% year-on-year decline, giving it a 21.46% share of the market.

Earlier this year, Ola Electric was also under scrutiny from the Ministry of Heavy Industries and the Ministry of Road Transport and Highways following discrepancies between Vahan vehicle registration data and the company’s self-reported sales.

In February, while Vahan data showed 8,652 registrations, Ola reported 25,000 units sold. The company later attributed the gap to contract renegotiations with registration vendors Rosmerta and Shimnit India, which it claimed caused a temporary registration backlog.