Ola Electric to Consider Rights Issue for Fresh Capital Amid Market Share Decline
· Business · Economic Times, LiveMint
Ola Electric Mobility will consider raising funds through a rights issue at a board meeting scheduled for September 28, as stated in a regulatory filing on Wednesday. The proposed fundraise, subject to regulatory and statutory approvals, comes weeks after the company's board approved plans to raise up to Rs 1,500 crore through equity shares and other securities. The rights issue route is being considered to enable participation by all eligible shareholders including retail, institutional, and promoter group. This comes just three months after Ola Electric raised Rs 780 crore through a QIP in June, having initially planned to raise Rs 500 crore through that issue.
Why it matters
Existing and potential shareholders of Ola Electric may participate in the upcoming rights issue to support the company's fundraising efforts amid declining market share and financial pressure. The move reflects the company's attempt to strengthen its capital position as rivals like TVS Motor, Bajaj Auto, and Ather Energy gain ground in the electric two-wheeler market.
Read the original report — Economic Times
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