Ola Electric Secures Rs 780 Crores Through Qualified Institutional Placement

Ola Electric Raises Rs 780 Crore through Qualified Institutions Placement

Bengaluru-based electric vehicle maker Ola Electric Mobility has successfully raised approximately Rs 780 crore through a qualified institutions placement (QIP), exceeding its initial fundraising plan of Rs 500 crore. The company's stock exchange filings reveal that Ola Electric Mobility allotted 21.76 crore equity shares to eligible qualified institutional buyers at an issue price of Rs 35.86 per share.

The QIP saw significant participation from prominent investors, including Goldman Sachs, BNP Climate Fund, Motilal Oswal Mutual Fund, Mirae Asset Mutual Fund, Kotak Mahindra Mutual Fund, JM Financial Mutual Fund, and Baroda BNP Paribas Mutual Fund, among others. The issue was priced at Rs 35.86 per share, representing a discount of 4.98 percent, or Rs 1.88 per share, to the SEBI floor price of Rs 37.74 per share.

A qualified institutions placement (QIP) is a mechanism that enables listed companies to raise capital by issuing shares to qualified institutional buyers, such as mutual funds, insurance companies, pension funds, and foreign portfolio investors, without undergoing a lengthy public offering process. Ola Electric launched its QIP on June 1, 2026, following approvals granted by its board in October 2025 and shareholders through a postal ballot in November 2025.

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The fundraising exercise follows a challenging year for the electric scooter maker, which has been focused on improving profitability and reducing losses amid slowing sales and rising competition in India's electric two-wheeler market. For the quarter ended March 31, 2026, Ola Electric reported a consolidated net loss of Rs 500 crore, compared with a loss of Rs 870 crore in the year-ago period, representing an improvement of 42.5 percent year-on-year.

Revenue from operations fell 56.6 percent year-on-year to Rs 265 crore in the March quarter from Rs 611 crore a year earlier. On a sequential basis, revenue declined 43.6 percent from Rs 470 crore in the December quarter. The QIP marks Ola Electric's first major equity fundraising exercise since its public listing and comes at a time when several new-age technology companies are tapping institutional investors to shore up capital and fund expansion plans.