Ola Electric Technologies (OET), a wholly-owned subsidiary of Ola Electric, has received board and shareholder approval to raise ₹877.6 crore through the issuance of 87.76 crore non-cumulative, non-participating Series A Optionally Convertible Redeemable Preference Shares (OCRPS). This funding is part of a strategic move to bolster Ola Electric’s EV ecosystem, with proceeds allocated to Ola Cell Technologies (OCT) via preferential allotment.
Strengthening Manufacturing and R&D
The capital infusion is aimed at expanding indigenous cell development and scaling EV manufacturing capabilities. While OET oversees vehicle platforms and battery technology, OCT focuses on cell research and development, supporting vertical integration and reducing reliance on imported cells. This strategic alignment positions Ola Electric to meet the growing demand for electric two-wheelers in India.
Efficient Utilization of IPO Proceeds
Following its ₹5,500 crore IPO in August 2024, Ola Electric received shareholder approval to reallocate portions of the IPO proceeds for capital deployment. The revised allocation includes:
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₹1,049 crore for R&D
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₹901 crore for organic growth initiatives
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₹395 crore for debt repayment
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₹248 crore for general corporate purposes
This structured capital deployment underscores the company’s focus on sustainable growth and technology development in the EV sector.
Expanding EV Production Capacity
OCT’s funding will enable expansion of cell manufacturing capacity from 5 GWh to 6.4 GWh, enhancing Ola Electric’s ability to supply batteries for its growing range of EV products. By focusing on indigenous cell production, the company mitigates geopolitical risks and strengthens the supply chain resilience of its EV operations.
Driving India’s EV Revolution
The ₹877.6 crore funding through preferential allotment reinforces Ola Electric’s commitment to sustainable electric mobility. By investing in cutting-edge battery technology and manufacturing expansion, the company aims to consolidate its leadership in India’s EV market, accelerate adoption of electric two-wheelers, and strengthen the country’s green mobility ecosystem.