Ola Electric promoter Bhavish Aggarwal has pledged a 4.32% stake in the electric two-wheeler maker to fund his participation in the company’s upcoming rights issue.
According to a company filing with the stock exchanges on October 4, the pledge has been created solely to finance Aggarwal’s subscription to the rights issue approved by Ola Electric’s board. The company clarified that no shares are being sold as part of the transaction.
Ola Electric’s board approved a rights issue of up to Rs 1,000 crore on September 28. The company subsequently filed its Draft Letter of Offer with the stock exchanges, outlining the proposed fundraise.
The company has not disclosed the amount being raised by Aggarwal against the pledged shares or the exact amount he plans to invest in the rights issue. Ola Electric also said there are currently no other pledges on his securities.
As part of the transaction, 20 crore shares held by Aggarwal are being pledged against non-convertible debentures issued by Krutrim Data Centre Private Limited, a non-operative promoter group entity owned by Aggarwal. The pledge is in favour of CTL Trusteeship Limited.
Ola Electric said, “This pledge is solely to fund his subscription to the issue and there are no other pledges to his securities currently; no shares are being sold. The promoter will invest alongside all other shareholders on the same terms.”
The proposed rights issue comes as Ola Electric seeks to strengthen its financial position amid pressure on its business. The company’s operating revenue declined 45% year-on-year to Rs 455 crore in Q1 FY27, compared with Rs 828 crore in the same quarter of the previous year.
The company’s electric vehicle registrations also declined 25% to 43,908 units during Q1 FY27. However, Ola Electric narrowed its net loss by 21.1% to Rs 336 crore during the quarter.
The latest fundraise follows Ola Electric’s Rs 780 crore qualified institutional placement (QIP) in June. The QIP was undertaken as part of the company’s efforts to strengthen its balance sheet and support its growth plans.
The proposed rights issue will provide existing shareholders an opportunity to invest additional capital in Ola Electric. Aggarwal’s decision to pledge part of his existing stake will allow him to participate in the issue without selling those shares.
Ola Electric, which went public in August 2024, has been expanding its electric two-wheeler portfolio and manufacturing capabilities. The company is competing with established two-wheeler manufacturers including TVS Motor and Bajaj Auto, as well as electric vehicle maker Ather Energy.
Ola Electric shares closed at Rs 37.09 per share in the last trading session, giving the company a market capitalisation of Rs 17,162 crore.
Aggarwal’s pledge comes ahead of the next steps in Ola Electric’s proposed rights issue. While the board has approved the fundraise of up to Rs 1,000 crore, the company has yet to disclose the final issue terms, including the amount Aggarwal will subscribe to through the rights issue.
With the pledge, Aggarwal is set to participate in the rights issue alongside other shareholders, while the pledged shares remain collateral for the funding of his subscription.
