Ola Electric approves rights issue at 26% discount to raise up to Rs 1,000 crore

Ola Electric has announced a rights issue priced at Rs 27 per share, a significant discount to current market levels, to raise up to Rs 1,000 crore. The company will collect 60% of the amount upfront from investors, with the remaining 40% due in a second call.

Chairman Bhavish Aggarwal has committed to fully subscribe to his allocation, utilizing a pledged stake for the investment. The capital infusion is expected to help the company reduce its debt burden and move closer to achieving cash breakeven.

This fundraising comes as Ola Electric navigates profitability challenges in the electric two-wheeler market.