Ola Electric Rights Issue: EV Maker Sets Rs 27 Price To Raise Rs 1,000 Crore, Offers 26% Discount

Ola Electric shares are set to remain in focus after the electric two-wheeler maker fixed the price of its proposed rights issue at Rs 27 per share, offering existing shareholders a sizeable discount to the prevailing market price. The listed EV company plans to raise up to Rs 1,000 crore through the fundraising exercise.

The Bengaluru-based electric scooter manufacturer said the rights issue price is around 26 per cent below its current market price, making the offer significantly cheaper for eligible shareholders than purchasing the stock from the open market. The fundraising comes as the electric mobility player looks to bring in fresh capital through its existing investor base.

Ola Electric Rights Issue Price: Rs 27 Per Share

Under the proposed issue, Ola Electric, the listed electric vehicle company, will offer additional equity shares to eligible existing shareholders at Rs 27 apiece. The final entitlement will be linked to the record date, which the EV maker is yet to announce.

For shareholders, the pricing is the key feature of the issue. By fixing the offer price at a 26 per cent discount to the prevailing market price, the electric two-wheeler manufacturer has created an opportunity for existing investors to increase their holding at a lower price than buying additional shares through the stock market.

A rights issue also gives existing shareholders the first opportunity to participate in a company's fresh capital raising. Investors who choose not to subscribe to their entitlement could see their percentage ownership in the electric mobility company reduce once the new shares are allotted.

Ola Electric Rights Issue Payment: 60% To Be Paid Initially

The EV player has opted for a two-instalment payment structure, which means investors will not have to pay the entire Rs 27 per share upfront.

Shareholders subscribing to the rights issue will initially pay 60 per cent of the issue price, or Rs 16.20 per share, at the time of application. The remaining Rs 10.80 per share will be collected later through a final call, with the date to be decided by the company's board.