Ola Electric Mobility postponed its board meeting scheduled for October 5 to decide on a rights issue worth up to Rs 1,000 crore. The company is awaiting in-principle approval from stock exchanges before proceeding. The rights issue involves partly paid-up equity shares with a face value of Rs 10 each, with key details like issue price and timing yet to be finalized, according to economictimes.indiatimes.com.
The board meeting was initially announced on September 28 and was planned for October 5 or after receiving stock exchange approval, whichever came later. Ola Electric did not provide a revised date for the meeting. Separately, CEO Bhavish Aggarwal pledged a 4.32% stake in the company to participate in the rights issue, as stated in a filing on October 4.
The Rs 1,000 crore rights issue is aimed at raising capital to support Ola Electric’s growth and expansion plans in the electric vehicle sector. Rights issues are a common method for companies to raise funds from existing shareholders. The delay in the board meeting reflects the company’s compliance with regulatory approvals, which is critical for market confidence and smooth execution of the fundraising.
The next step for Ola Electric is to secure the stock exchanges’ in-principle approval before rescheduling the board meeting to finalize the rights issue details. The company’s filings confirm the CEO’s stake pledge as part of the rights issue participation, signaling internal commitment to the capital raise.