Ola Electric Shares Decline Up to 4% Following QIP Launch to Raise Up to Rs 500 Crore

Ola Electric Mobility Shares Decline 4% After Launching Rs 500 Crore QIP

Ola Electric Mobility's shares took a hit on Tuesday, declining nearly 4 percent in the day's trade, following the company's announcement to launch a qualified institutional placement (QIP) to raise up to Rs 500 crore.

The QIP issue was opened on Monday at a floor price of Rs 37.74 per share, which represents a discount of 9.03 percent to the previous closing price of Rs 41.49 per share. The equity shares being offered under the QIP have a face value of Rs 10 each and are being issued to qualified institutional buyers.

The company's decision to raise up to Rs 500 crore through the QIP issue, with an option to increase the size of the fundraising, was reported by CNBC-TV18. The proceeds from the issue are proposed to be used for debt repayment, funding expenditure related to the company's organic growth initiatives, and for general corporate purposes.

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On the National Stock Exchange (NSE), shares of Ola Electric Mobility fell as much as 3.66 percent to an intraday low of Rs 38.08 per share, reflecting the market's initial reaction to the QIP announcement.