Ola Electric plans rights issue to raise fresh capital

Electric is set to seek board approval for a proposed rights issue on September 28, as the EV maker looks to raise additional capital. The company had earlier received approval to raise up to ₹1,500 crore through equity-based routes and raised ₹780 crore via a QIP in June 2026. The proposed rights issue would allow eligible retail, institutional and promoter-group shareholders to participate, subject to regulatory approvals. The timing is significant as Ola continues to focus on improving margins and reducing cash burn. Its Q1 FY27 operating revenue fell 45% YoY to ₹455 crore, while the consolidated net loss narrowed to ₹336 crore from ₹428 crore a year earlier. Ola's electric two-wheeler market position has also weakened from its 2024 peak, with its market share falling from around 35% in 2024 to about 15% in 2025, according to Business Standard. The key factors to monitor now are the rights issue size, pricing, promoter participation and deployment of funds. Successful fundraising could strengthen liquidity, while continued cash burn and weak volumes remain important risks. Disclosure: I do not hold any position in Ola Electric Mobility. This post is for informational purposes only and is not investment advice.