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Ola Electric prices ₹1,000 crore rights issue at ₹27 — about 26% below market; record date 13 Oct, opens 22 Oct
Ola Electric's board on Wednesday fixed the terms of its rights issue: 37.03 crore partly paid-up shares at ₹27 each, offered 2 for every 25 shares held, to raise up to ₹999.74 crore. Shareholders on the books on 13 October get the entitlement. The issue opens 22 October and closes 30 October; 60% of the price is due on application and the rest on a call expected by October 2027.
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The terms (board meeting, 7 Oct 2026):
| Item | Detail |
|---|---|
| Price | ₹27 per share (₹10 face value + ₹17 premium) |
| Ratio | 2 rights shares for every 25 held |
| Shares on offer | 37,02,72,665 partly paid-up shares |
| Size | ₹999.74 crore (assuming full subscription and all calls paid) |
| Pay now / later | ₹16.20 on application (60%) · ₹10.80 on a first and final call expected on or before 31 Oct 2027 (40%) |
| Record date | Tue 13 Oct 2026 |
| Issue window | Opens Thu 22 Oct · last day to sell entitlements on market Mon 26 Oct · closes Fri 30 Oct |
Versus the market: Ola Electric closed at ₹36.32 on NSE on 7 Oct (+0.83%). ₹27 is about 25.7% below that close (Capital Chronicle arithmetic); the company's statement calls it "about 26% below the current market price".
Takeaway: existing shareholders can add 8% to their holding at a discount — or sell the entitlement — but must pay ₹16.20 now and ₹10.80 later. Not investment advice.
Analysis
Where the money goes
The Letter of Offer (filed with SEBI, BSE and NSE on 7 Oct) puts net proceeds at ₹983.99 crore after ₹15.75 crore of issue expenses:
| Use | ₹ crore |
|---|---|
| Repay / prepay borrowings of the company and material subsidiaries | 350.00 |
| Organic growth initiatives | 400.00 |
| General corporate purposes (capped at 25% of gross proceeds) | 233.99 |
The company says these needs are management estimates and have not been appraised by any bank or financial institution — a standard rights-issue risk disclosure.
The promoter
Ola Electric says its promoter, Bhavish Aggarwal, has confirmed he will subscribe to his full entitlement and will not renounce it except within the promoter group or to specific investors that must be named at least two days before the issue opens. The company's statement adds that "the promoter will invest alongside all other shareholders on the same terms".
What the numbers mean for a shareholder (illustration)
Capital Chronicle arithmetic from the filed terms. Someone holding 2,500 shares on 13 Oct is entitled to 200 rights shares: ₹3,240 due on application and ₹2,160 on the later call, ₹5,400 in all. Shares outstanding go from 462.84 crore to 499.87 crore if fully subscribed — an increase of exactly 8%.
A rights entitlement can be sold on the exchange until 26 Oct. Shareholders who neither subscribe nor sell see their percentage stake shrink once the new shares are allotted.
Partly paid shares, in plain words
You pay 60% now and get partly paid-up shares, which the Letter of Offer says will be listed under a separate ISIN — and warns an active market for them may not develop. The board can change the call date. If a holder does not pay the call on time, they may owe interest set by the board, or the company may forfeit the application money and any call money already paid, under the Companies Act and its articles.
What to watch
- Ola Electric's share price into the 13 Oct record date
- Trading in rights entitlements (22–26 Oct)
- Whether any specific investors are named before 22 Oct
- Final subscription after 30 Oct
Not investment advice. No politics.
Sources
- Ola Electric Mobility Limited — Outcome of Board Meeting: rights issue terms and record date, filed 7 Oct 2026 — https://nsearchives.nseindia.com/corporate/OLAELECTRIC_07102026185359_OutcomeRightsIssueOctober072026.pdf
- Ola Electric Mobility Limited — Company Statement, 7 Oct 2026 — https://nsearchives.nseindia.com/corporate/OLAELECTRIC_07102026195359_CompanyStatementOctober072026.pdf
- Ola Electric Mobility Limited — Letter of Offer dated 7 Oct 2026 (Objects of the Issue; promoter participation) — https://nsearchives.nseindia.com/corporate/OLAELECTRIC_07102026235805_IntimationLetterofOfferOctober072026.pdf
- NSE — OLAELEC quote, 7 Oct 2026 close ₹36.32 — https://www.nseindia.com/get-quotes/equity?symbol=OLAELEC
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