The announcement came after Ola Electric shares surged 10.93% to close at ₹41.91 on Wednesday, following a rally of as much as 9% at the open.
The electric two-wheeler maker informed the exchanges on Wednesday that the meeting will consider the fundraise under Regulation 29(1)(d) of the Securities and Exchange Board of India (SEBI) Listing Regulations.
The announcement gave Ola Electric’s stock a lift on Wednesday. Shares surged as much as 9% at the open before closing 10.93% higher at ₹41.91 on the National Stock Exchange. More than 9 crore shares changed hands, or around 1.65 times the stock’s 10-day average trading volume.
Rights issue comes months after QIP
The proposed rights issue follows Ola Electric’s ₹780 crore qualified institutional placement (QIP) in June, which was oversubscribed by 56%.
The QIP attracted demand from long-only investors, including global investors such as Goldman Sachs and BNP Climate Fund, as well as Indian mutual funds including Motilal Oswal Mutual Fund, Mirae Asset Mutual Fund, Kotak Mahindra Mutual Fund, JM Financial Mutual Fund and Baroda BNP Paribas Mutual Fund.
Ola Electric’s Fund Raising Committee subsequently approved the closure of the QIP after receiving application forms and funds from eligible qualified institutional buyers.
Vehicle registrations show signs of recovery
The latest fundraise proposal comes as Ola Electric has also been seeing an improvement in vehicle registrations.
VAHAN registrations nearly doubled sequentially to 43,719 units in the first quarter of FY27, from 22,252 units in the March quarter, according to the company’s July 1 exchange filing.
June accounted for 16,144 registrations, making it the company’s strongest monthly performance in recent quarters.
Ola Electric attributed the improvement to better retail execution, stronger customer demand and improved product availability. The company said operational initiatives undertaken over the past few quarters, along with its product portfolio, had helped sustain the momentum in India’s electric two-wheeler market.