Ola Electric on Monday launched its qualified institutional placement (QIP) of equity shares, marking its first major fundraising exercise since the company’s initial public offering in August 2024. The electric two-wheeler maker has fixed the floor price at ₹37.74 per share, a discount of 4.53% to Monday’s closing price of ₹39.53.
The company’s fund-raising committee approved the launch of the QIP on June 1 and cleared the preliminary placement document for institutional investors. The move follows approvals granted by the board in October 2025 for a ₹1,500 crore capital raise and a subsequent special resolution passed by shareholders through a postal ballot in November 2025. Ola Electric said 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.
A significant portion of the proceeds will be used to repay or prepay borrowings of the parent company and its material subsidiaries. These include term loans and working capital facilities availed from banks, financial institutions and debt funds. According to the company, deleveraging will strengthen its balance sheet by reducing liabilities, improving the debt-equity ratio and lowering debt-servicing costs, including interest expenses. Ola Electric may also route funds to subsidiaries through equity, debt or other financial instruments to facilitate repayment of their borrowings.
The fundraise comes at a crucial time for Ola Electric as it works to stabilise operations and improve financial performance. In FY26, the company narrowed its net loss by nearly 20% to ₹1,833 crore from ₹2,276 crore a year earlier. However, operating revenue more than halved to ₹2,460 crore from ₹4,932 crore in FY25 amid a sharp decline in vehicle deliveries. In the March quarter, Ola Electric reported its first operating cash flow-positive quarter, generating ₹91 crore in operating cash flow, while gross margins improved to 38.5%.
The company has also shown signs of a recovery in recent months. In May, Ola Electric posted the highest month-on-month growth among major electric two-wheeler manufacturers, with registrations rising nearly 23% to 15,139 units. Its market share improved to 8.88% during the month.
Last month, Ola Electric announced a ₹2,000 crore investment in its wholly-owned subsidiaries focused on electric vehicle and battery manufacturing as part of its strategy to deepen localisation and strengthen vertical integration.
