Ola Electric has fixed its Rs. 1,000 crore rights issue at Rs. 27 per share. The Bengaluru-based EV maker announced the terms on October 7. The issue carries a 26% discount to the previous market price. 

 It aims to strengthen finances, reduce debt and support business growth. The company will offer 37.03 crore partly paid-up shares through the issue.

Eligible shareholders can subscribe from October 22 through October 30, 2026. The record date falls on October 13 for determining eligible shareholders. Investors will receive two rights shares for every 25 shares held. Ola Electric expects to raise Rs. 999.74 crore if shareholders fully subscribe. 

The company will collect Rs. 16.20 per share during the initial application. The remaining Rs. 10.80 will come through a first and final call. Ola Electric expects that payment by October 31, 2027. The board can also revise the payment schedule based on business requirements. 

Ola Electric plans to direct Rs. 350 crore toward outstanding borrowing repayment or prepayment. Another Rs. 400 crore will support organic growth initiatives across its business. 

The company has allocated the remaining proceeds for general corporate purposes. Net proceeds could reach Rs. 983.99 crore after estimated issue expenses.

Bhavish Aggarwal has pledged 20 crore shares, representing 4.32% of Ola Electric's equity. The pledge will help finance his participation in the rights issue. Promoter group company Krutrim Data Centre raised financing through non-convertible debentures. Ola Electric said, “no shares are being sold” through the arrangement.

Aggarwal held a 26.52% stake in Ola Electric as of June 30, 2026. The offer document warns that lenders could invoke the pledge after a financing default. Such enforcement could eventually reduce his holding in the company.

The fundraising follows Ola Electric's Rs. 780.24 crore qualified institutional placement completed in June. The QIP involved around 21.76 crore shares priced at Rs. 35.86 each. The latest rights issue therefore adds another major capital raise within months.

Ola Electric shares fell 3.63% to Rs. 35 during October 8 trading. Investors appear focused on dilution, additional funding needs and the company's profitability outlook.

The discounted issue price could encourage participation, while non-participating shareholders face ownership dilution. The fundraising now places greater focus on Ola Electric's ability to convert capital into sustainable growth.

Also Read: Meesho Shares Jump 6.1% to Rs. 240: Is More Upside Coming?