NEW DELHI, Sept 6: Ola Electric’s board has approved a proposal to raise up to ₹1,500 crore through equity shares or convertible securities as the electric vehicle maker looks to strengthen its capital position and fund expansion plans.
The fundraising proposal will require approval from shareholders and the relevant regulatory authorities before the company can proceed with the issue.
The move comes at a time when Ola Electric is facing pressure in the competitive electric two-wheeler market. The company reported a year-on-year decline in sales in August, while several rivals recorded growth during the same period.
The proposed capital will help the company support its ongoing expansion in battery-cell manufacturing and energy-storage solutions. Ola Electric is developing its Ola Shakti and Mahashakti businesses as part of its broader strategy to build an integrated energy ecosystem.
The company has also been increasing production at its Gigafactory, with manufacturing capacity expected to rise substantially as it scales up operations.
The latest fundraising plan follows a ₹780 crore qualified institutional placement completed around three months earlier. The fresh capital-raising initiative indicates the company’s continued focus on securing funds for its manufacturing and technology ambitions.
Ola Electric had previously approved an investment of ₹2,000 crore in its subsidiaries for electric vehicle and battery-cell manufacturing activities.
The company’s latest move comes amid intensifying competition in India’s electric mobility sector, with established two-wheeler manufacturers expanding their EV portfolios and new players competing for market share.
With the proposed fundraising, Ola Electric is seeking to reinforce its balance sheet while continuing investments in battery technology, manufacturing capacity and energy-storage products.