Ola Electric raised ₹780.24 crore through a qualified institutional placement (QIP) last week, leading to a more than 10% surge in its shares during intraday trading. The company issued 21.75 crore equity shares at ₹35.86 apiece, priced at a 5% discount to the floor price of ₹37.74 announced on June 1. Following the announcement, shares touched an intraday high of ₹49.01 on the BSE before settling 8.5% higher at ₹48.31, boosting the company’s market capitalization to about ₹22,359.8 crore ($2.3 billion), according to inc42.com.
The QIP was oversubscribed by 56%, with participation from investors including Goldman Sachs, Motilal Oswal, Mirae Asset Management, JM Financial, and Societe Generale. The fundraise is part of Ola Electric’s broader plan to raise up to ₹1,500 crore, approved by the board and shareholders in October last year. Proceeds from the QIP will be allocated to various uses: ₹225 crore for repaying or prepaying borrowings, ₹335 crore for organic growth initiatives, and ₹184.87 crore for general corporate purposes, as detailed in the placement document.
This capital infusion comes amid a rally in new-age tech stocks and follows Ola Electric’s shares rebounding more than 90% from their all-time low of ₹21.21 in early March. The company’s ability to attract marquee institutional investors highlights growing confidence in the electric vehicle sector, which is witnessing increased funding activity. The QIP pricing at a discount and strong subscription reflect robust demand for Ola Electric’s equity amid its expansion plans.
Ola Electric’s next steps include deploying the raised funds to reduce debt and invest in growth, with the company’s market capitalization standing at ₹22,359.8 crore after the QIP. The stock’s performance and fundraise details were reported by inc42.com on June 9.