EV Maker Ola Electric’s Board to Meet on October 25, Set to Decide on Raising Fresh Funds

The board of electric two-wheeler maker Ola Electric Mobility will hold a meeting on October 25 to take a call on raising fresh funds by issuing equity shares, as per an exchange filing on Wednesday.

The filing further pointed out that the board of directors will consider a private placement, qualified institution placement, preferential issue, other eligible methods, or a combination thereof. In addition to that, the board decision will be subject to regulatory and shareholders’ approval.

Back in the first half of October, Ola Electric Technologies (OET), a wholly owned subsidiary of Ola Electric secured approval from its board and shareholders to raise up to Rs 877.6 crore by issuing 87.76 crore preferential shares to fellow subsidiary Ola Cell Technologies (OCT) to strengthen its financial position and operational flexibility across subsidiaries, Economic Times reported.

OET, the manufacturing and technology arm of Ola Electric builds everything from vehicle platforms to battery technology. On the other hand, OCT focuses on indigenous cell R&D and large-scale manufacturing, supporting vertical integration and reducing dependence on imported cells, which helps protect itself from geopolitical risk.

In May earlier this year, Ola Electric received the board’s approval to raise Rs 1,700 crore through debt instruments, which included loans, working capital facilities or the issuance of non-convertible debentures (NCDs) and other eligible securities.

In August 2024, Ola Electric had raised Rs 5,500 crore in its IPO. Of this, Rs 1,228 crore was earmarked for OCT to expand its cell manufacturing capacity from 5 to 6.4 GWh, according to the IPO prospectus, an ET report stated.

Through the latest fundraising plan, Ola Electric looks to enter battery energy storage system (BESS) with its first non-vehicle offering, Shakti. The modular battery solution was launched on October 16, with availability scheduled from January 2026. The firm will build the battery using its in-house 4680 Bharat Cells at its Tamil Nadu Gigafactory.

Additionally, the EV manufacturer is also facing rising competition and financial turbulence. Its market share in the electric two-wheeler space dropped to 13.2% in September with 11,780 scooters sold, down from 18.7% in August, when it sold 19,020.