Ola Electric Mobility Limited (BSE: 544225, NSE: OLAELEC) has submitted a Letter of Offer for a rights issue of ₹999.74 crore through issuance of 37,02,72,665 partly paid-up Equity Shares at ₹27 per share (₹10 face value + ₹17 premium). The issue ratio is 2 Rights Equity Shares for every 25 fully paid-up Equity Shares held as on Record Date of October 13, 2026.
Financial Performance
The company reported challenging financial results with consolidated revenue from operations of ₹455 crore for Q1 FY2027 (decreased from ₹828 crore in Q1 FY2026) and FY2026 revenue of ₹2,253 crore (compared to ₹4,514 crore in FY2025). Loss before tax was ₹336 crore in Q1 FY2027 and ₹1,829 crore for FY2026, with net worth standing at ₹3,769 crore as of June 30, 2026. Basic and diluted EPS was (₹0.75) for Q1 FY2027 and (₹4.16) for FY2026.
Board Composition and Management
The board consists of 6 directors including Chairman and Managing Director Bhavish Aggarwal (Promoter), Krishnamurthy Venugopala Tenneti, Arun Sarin, Manoj Kumar Kohli, Shashank N. D., and Shradha Sharma. Key management includes Deepak Rastogi as CFO and Deepa Bansal as Company Secretary and Compliance Officer.
Utilization of Proceeds
Net proceeds of ₹983.99 crore (after estimated issue expenses of ₹15.75 crore) will be utilized for: ₹350 crore for repayment/prepayment of borrowings (including ₹48.57 crore company debt and ₹1,801.32 crore subsidiary debt), ₹400 crore for organic growth initiatives, and ₹233.99 crore for general corporate purposes. CRISIL Ratings Limited will serve as monitoring agency.
Issue Structure and Timeline
Investors must pay ₹16.20 per share (60% of issue price) on application, with balance ₹10.80 per share (40%) payable on First and Final Call expected by October 31, 2027. Key dates include: Issue Opening (October 22, 2026), Last date for renunciation (October 26, 2026), Issue Closing (October 30, 2026), Allotment (November 2, 2026), and Listing (November 4, 2026).
Regulatory Compliance and Risk Factors
The issue complies with SEBI ICDR Regulations and SEBI Circular dated March 11, 2025, with in-principle approvals from BSE and NSE. The document discloses 88 risk factors including history of losses, limited operating history in EV manufacturing, dependence on limited E2W models, pending litigation including SEBI show cause notice dated April 10, 2026, high employee attrition, and dependence on government incentives.
Corporate Structure and Tax Benefits
The company has 10 subsidiaries including Ola Electric Technologies Private Limited and Ola Cell Technologies Private Limited, with international presence in Netherlands, UK, China, and USA. The company avails various tax benefits including concessional tax rates under sections 115BAA and 115BAB, and indirect tax benefits under GST and customs laws.
Promoter Bhavish Aggarwal has committed to subscribe to his full entitlement, with promoter group members either subscribing or renouncing within the group. The company emphasizes its vertically integrated EV platform, established market presence, integrated manufacturing infrastructure, and proprietary technology investments as qualitative factors justifying the issue price.