Ola Electric’s board of directors has approved a rights issue of partly paid-up equity shares worth up to ₹1,000 crore to eligible shareholders. The board will soon finalize details such as the price, rights entitlement ratio, record date, and timing of the issue. This decision follows the board’s recent approval to raise fresh funding of up to ₹1,500 crore, announced on September 23, 2026, according to inc42.com.
The rights issue was selected as the preferred route to enable participation by all eligible shareholders, including retail, institutional, and promoter groups, subject to applicable law. The company has not yet disclosed how it plans to raise the remaining ₹500 crore of the ₹1,500 crore target. This marks Ola Electric’s second major capital raise in recent months, after a ₹780.24 crore qualified institutional placement (QIP) in June 2026, which was part of an earlier approval to raise up to ₹1,500 crore cleared in October 2025 and ratified by shareholders in November 2025.
Ola Electric plans to use the proceeds to expand its electric vehicle business as well as its battery cell manufacturing and battery energy storage system verticals. In the previous fundraise, the company allocated ₹225 crore to repay or prepay borrowings and ₹335 crore to support organic growth initiatives. The company appears to be increasingly focusing on battery cell manufacturing and energy storage systems, reflecting a strategic shift to strengthen its position in these segments within the EV ecosystem.
The board’s approval of the ₹1,000 crore rights issue is a key step in Ola Electric’s ongoing capital-raising efforts to support its growth ambitions. The company will announce the specifics of the rights issue, including pricing and timing, once finalized. The next update on the fundraise is expected after the board’s decisions on these particulars are made public.