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Ola Electric Shares Plunge 8% Following Rs 1000 Crore Rights Issue Announcement
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CNBC TV18•08-10-2026, 13:07
Ola Electric Shares Plunge 8% Following Rs 1000 Crore Rights Issue Announcement
- •Ola Electric Mobility shares dropped over 8% after setting the rights issue price at Rs 27 per share, reflecting a 26% discount from the previous close.
- •The Rs 1,000 crore rights issue is scheduled to open for subscription on October 22 and will close on October 30, with the record date set for October 13.
- •Eligible shareholders will receive two rights shares for every 25 shares held as of the record date, with payments structured in two calls.
- •Chairman and Managing Director Bhavish Aggarwal plans to fully subscribe to his entitlement, having recently pledged a 4.32% stake to fund his participation.
- •Proceeds from the rights issue are intended to help reduce debt and drive the electric vehicle maker toward cash breakeven.
Key Questions Answered
Ola Electric fixed its rights issue price at 27 per equity share, representing about a 26% discount to Wednesday's closing price. Eligible shareholders will receive two rights shares for every 25 shares held as of the record date.
The record date to determine eligible shareholders for the rights entitlement is October 13, 2026. The issue will open for subscription on October 22 and close on October 30, 2026.
The 1,000 crore issue has a two-call structure where 60% is payable on application and 40% through a final call. The proceeds could help reduce debt and move the company toward cash breakeven without near-term fund raises.
