Ola Electric Shares Fall 9%, Snap Four-Day Winning Streak Ahead of Fundraising Decision

Ola Electric Mobility shares came under sharp selling pressure on Friday, September 25, falling as much as 9% and bringing a four-session winning streak to an end. 

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The stock opened at ₹42.50 on the BSE and briefly touched ₹42.52 before slipping to an intraday low of ₹38.70. 

The decline came after Ola Electric informed the exchanges that its board will meet on September 28 to consider raising fresh capital through a rights issue of equity shares. Any fundraising proposal will be subject to the necessary statutory and regulatory approvals. 

Ola Electric board to consider rights issue 

The electric two-wheeler maker disclosed the proposed fundraising under Regulation 29(1)(d) of the SEBI Listing Regulations. 

The company has not yet disclosed the size or other terms of the potential rights issue. Those details will depend on the board’s consideration of the proposal. 

The planned meeting comes only a few months after Ola Electric tapped institutional investors for fresh capital. 

In June, the company raised ₹780 crore through a qualified institutional placement, or QIP. The issue received demand exceeding the shares on offer by 56%. 

The institutional investors participating in the fundraising included Goldman Sachs and BNP Climate Fund, along with 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 Fundraising Committee subsequently approved the closure of the QIP after receiving applications and funds from eligible investors. 

VAHAN registrations almost double sequentially in Q1 FY27 

This latest fundraising development has been coinciding with the rise in vehicle registrations for Ola Electric. 

As per an exchange filing dated July 1, the VAHAN registrations in Q1 FY27 stood at 43,719 units. This was almost twice the number of registrations in March at 22,252 units. 

The month of June saw the highest level of registrations at 16,144 units. 

According to the company, this increase was because of better retail execution and increased customer demand for their vehicles. 

It has also added that the efforts made by the company during the past quarters, along with their products, has enabled them to gain momentum in the electric two-wheeler market in India. 

Four-session rally comes to an end 

Friday's fall comes after a four-session run-up in the share price of Ola Electric. 

The stock commenced the September 25 trading session at ₹42.50, slightly below its intra-day high of ₹42.52, before intense selling took the stock down to ₹38.70. 

The stock will now be in focus for the next board meeting scheduled on September 28, where Ola Electric is set to discuss another fundraising plan a few months after raising ₹780 crores via its QIP. 

Until the board takes up the proposal, the size, pricing and other terms of the potential rights issue remain undisclosed.