The board of Ola Electric has approved an Rs 199 crore capital infusion into its battery manufacturing subsidiary, Ola Cell Technologies, INC42 reported.
In an exchange filing, the EV manufacturer stated that it will acquire 19.9 crore compulsory convertible preference shares (CCPS) in its wholly‑owned subsidiary at a price of Rs 10 each. The listed company expects this all‑cash transaction to be completed by April 30, 2025. Ola Cell Technologies will use the new funds to support its business requirements.
Additionally, Ola Electric's board approved converting overdue payables of Rs 61.2 crore owed by OCT into 6.12 crore compulsory convertible preference shares (CCPS).
MHI Notice
The Heavy Industries Ministry had instructed the Automotive Research Association of India (ARAI) to investigate discrepancies between Ola Electric's reported sales figures and the actual vehicle registrations, as well as consumer complaints. According to Vahan Portal statistics, while Ola Electric claimed to have sold 25,000 cars in February, only 8,600 were registered. This significant gap has raised concerns among officials regarding the accuracy of the company's figures and its overall management under Bhavish Aggarwal.
The start‑up stated that it is working to clear the backlog responsible for the discrepancies in vehicle registration data and that sales remain high. The start‑up is in the process of responding to emails from the Ministry of Heavy Industries, the Ministry of Road Transport and Highways (MORTH) and four states, all seeking further information.
Other Discrepancies
Ola Electric has been under regulatory scrutiny from various agencies, including the consumer rights watchdog CCPA, which has ordered investigations into complaints regarding alleged "deficiencies" in the start‑up's electric two‑wheelers and services.
Prior to this, the start‑up received a letter from the Ministry of Heavy Industries (MHI) requesting an explanation for the alleged discrepancy. As part of the ongoing investigation, Maharashtra RTO officials inspected several Ola showrooms across the state, including one in Pune. During these inspections, officials verified that vehicles were sold with valid trade certificates and proper paperwork. Due to noncompliance, 36 scooters were seized in Pune and Mumbai.
