Ola Electric shares fall 9% after four-session rally; board to consider rights issue

Shares of Ola Electric Mobility Ltd. were trading up to 9% lower on Friday, September 25, reversing after a four-session rally.

The decline comes after Ola Electric announced earlier this week that its board will meet on September 28 to consider a proposal to raise funds through a rights issue of equity shares, subject to the requisite regulatory and statutory approvals.

The electric two-wheeler maker informed the exchanges that the board will consider the proposed fundraise under Regulation 29(1)(d) of the Securities and Exchange Board of India (SEBI) Listing Regulations.

The proposed rights issue comes just months after Ola Electric raised ₹780 crore through a qualified institutional placement (QIP) in June. The issue was oversubscribed by 56%.

The QIP saw participation 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.

The latest fundraise proposal comes as Ola Electric has also reported an improvement in vehicle registrations.

VAHAN registrations nearly doubled sequentially to 43,719 units in Q1 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 Ola Electric’s strongest monthly performance in recent quarters.

The company attributed the improvement to better retail execution, stronger customer demand and improved product availability. Ola Electric said operational initiatives undertaken over the past few quarters, along with its product portfolio, helped sustain momentum in India’s electric two-wheeler market.