Ola Electric’s board has approved reallocating ₹575 Cr from its research and product development budget to other objectives
While ₹100 Cr will go towards organic growth initiatives, ₹475 Cr is proposed to be reallocated to repay or prepay debt
The move will reduce the total allocation for research and product development from ₹1,505 Cr to ₹930 Cr. The funds set aside for debt repayment will increase from ₹395 Cr to ₹870 Cr
Troubled EV major Ola Electric’s board has proposed yet another change to the utilisation of its ₹5,500 Cr IPO proceeds. The board has approved reallocating ₹575 Cr from its research and product development budget to other objectives.
While ₹100 Cr will go towards organic growth initiatives, ₹475 Cr is proposed to be reallocated to repay or prepay debt.
The move will reduce the total allocation for research and product development from ₹1,505 Cr to ₹930 Cr. The funds set aside for debt repayment will increase from ₹395 Cr to ₹870 Cr.
The company will now seek the nod of its shareholders for the proposed changes. As of March 11, 2026, Ola Electric had ₹1,295.63 Cr in unutilised IPO proceeds.
This marks the second major revision in the use of IPO proceeds in under a year. In August 2025, the company already trimmed its R&D outlay and introduced a debt repayment component, while significantly increasing allocation towards organic growth.
The latest development comes amid falling sales of its EVs and continuing losses. As a result, shares of Ola Electric are down more than 30% year-to-date, after slumping over 55% in 2025.
Amid all these, the company is now doubling down on its cell manufacturing business as it plans to scale its presence in its newest segment – battery energy storage system (BESS).
Earlier this week, it was reported that Ola Electric is looking to raise up to ₹2,000 Cr by selling a minority stake in its battery arm, Ola Cell Technologies, to financial investors. It was said to be in talks with sovereign wealth funds and global infrastructure investors, with Avendus Capital and Motilal Oswal running the process.
This is in addition to the company’s earlier plans to raise ₹1,500 Cr via a QIP and up to ₹1,700 Cr through debt instruments, none of which have fully materialised so far.
On the financial front, Ola Electric’s revenue plunged 55% YoY to ₹470 Cr in Q3 FY26, while its net loss narrowed 14% YoY to ₹487 Cr. The company also reported negative operating cash flows of ₹866 Cr over a nine-month period, driven by continued losses and lower-than-expected sales.
Shares of the company were trading 5.51% lower at ₹23.50 on the BSE at 15:25 IST amid a bloodbath in the broader market due to the raging military conflict in West Asia.
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