Ola Electric has launched its qualified institutional placement (QIP) to bolster its position in the E2W market
The company has set a floor price of ₹37.74 for its QIP, a discount of 4.53% from its closing price of ₹39.53
Ola Electric plans to utilise a portion of the net proceeds from the issue to repay or prepay existing borrowings taken by both the parent entity and its material subsidiaries
Ola Electric has launched its qualified institutional placement (QIP) to bolster its position in the E2W market.
The company has set a floor price of ₹37.74 for its QIP, a discount of 4.53% from its closing price of ₹39.53.
In a stock exchange filing today, the Bhavish Aggarwal-led company said its fund raising committee approved the opening of the QIP. The company added that it may offer a discount of up to 5% on the floor price, with the final issue price to be determined in consultation with the book-running lead managers.
Ola Electric plans to utilise a portion of the net proceeds from the issue to repay or prepay existing borrowings taken by both the parent entity and its material subsidiaries. These borrowings include term loans and working capital facilities availed from banks, financial institutions, and debt funds in the ordinary course of business.
The company stated that reducing debt is expected to strengthen its balance sheet by lowering outstanding liabilities and improving its debt-equity ratio. It also aims to reduce debt servicing costs, including interest obligations and potential prepayment charges associated with certain loans. Additionally, the company may route funds to its subsidiaries through equity, debt, or other financial instruments to facilitate repayment of their respective borrowings.
According to its filing, Ola Electric believes that deleveraging will improve its financial flexibility and free up internal accruals for future business expansion and growth initiatives. A stronger balance sheet and lower leverage could also help the company raise additional capital at more competitive rates in the future to support strategic opportunities and long-term expansion plans.
The fresh capital raise comes at a critical juncture for Ola Electric. While the company remains one of India’s largest E2W manufacturers, it continues to grapple with losses and intense competition.
For FY26, the company managed to narrow its net loss by nearly 20% to ₹1,833 Cr from ₹2,276 Cr in the previous fiscal. However, operating revenue more than halved to ₹2,460 Cr from ₹4,932 Cr in FY25 as vehicle deliveries came under pressure amid service-related challenges and weak consumer demand.
In Q4 FY26, Ola Electric posted its first operating cash flow positive quarter, generating ₹91 Cr in operating cash flow, while gross margins improved to 38.5%.
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