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Ola Electric Board Approves Rs 1,000 Crore Rights Issue to Boost Growth
- •Ola Electric's board has approved a rights issue of partly paid-up equity shares worth up to Rs 1,000 crore, pending regulatory approvals.
- •The issue will be open to eligible shareholders, with details like record date, price, and entitlement ratio to be announced later.
- •Bhavish Aggarwal, Chairman and Managing Director, will subscribe to his rights entitlement, demonstrating strong founder commitment.
- •Approximately Rs 350 crore from the proceeds will be used for debt repayment, and Rs 400 crore for organic growth.
- •The rights issue aims to allow existing shareholders, including retail investors, to participate and reduce dependence on external capital.
Key Questions Answered
The Ola Electric board has approved a rights issue of partly paid-up equity shares worth up to Rs 1,000 crore. The final price, entitlement ratio, payment terms, and issue period will be determined and announced by the board at a later date.
According to the Draft Letter of Offer, approximately Rs 350 crore of the proceeds will go toward debt repayment to ease operating expenses and drive cash breakeven. Another Rs 400 crore will be allocated for organic growth, with the remainder designated for general corporate purposes.
The promoter group collectively holds approximately 32.97 percent in Ola Electric. Chairman and Managing Director Bhavish Aggarwal has confirmed he will subscribe to his rights entitlement, potentially funding his participation by pledging part of his holding.
