Ola Electric launches QIP, sets floor price at Rs 37.74 per share to raise funds

Electric two-wheeler maker Ola Electric Mobility has launched a qualified institutional placement (QIP) to raise fresh capital from institutional investors, setting a floor price of Rs 37.74 per equity share for the issue, according to a stock exchange filing.

The company's fund-raising committee approved the opening of the QIP on June 1 and cleared the preliminary placement document for eligible institutional buyers. Ola Electric may also offer a discount of up to 5 per cent on the floor price, in accordance with Securities and Exchange Board of India (SEBI) regulations.

The issue price will be determined in consultation with the book-running lead managers.

Capital raising comes as it tries to turnaround its business The fundraising exercise comes as Ola Electric looks to shore up its balance sheet while grappling with a challenging operating environment marked by slowing demand, increasing competition and persistent losses in the Indian electric two-wheeler market.

A QIP allows listed companies to raise funds from institutional investors such as mutual funds, insurance companies, sovereign wealth funds and foreign portfolio investors without undertaking a public issue.

The fundraising move follows the company's announcement on May 14 to invest Rs 2,000 crore in its wholly owned subsidiaries engaged in electric vehicle and battery manufacturing. The investment is aimed at deepening localisation efforts and expanding vertical integration across its EV ecosystem.

Losses narrow, but revenue declines sharply

Ola Electric reported a consolidated net loss of Rs 500 crore for the March quarter (Q4 FY26), compared with a loss of Rs 870 crore in the corresponding period last year. The improvement was primarily driven by lower expenses. The company had posted a net loss of Rs 487 crore in the preceding December quarter.

For the full financial year FY26, consolidated net loss narrowed to Rs 1,833 crore from Rs 2,276 crore in FY25.

However, revenue from operations declined sharply to Rs 2,253 crore in FY26 from Rs 4,514 crore a year earlier, highlighting the pressure on vehicle sales and market share.

Brokerages have flagged concerns over market share erosion, persistent cash burn and slowing volume growth. Earlier, Citigroup downgraded the stock and lowered its target price, citing rising balance sheet pressures and challenges in sustaining growth.

Registrations show signs of recovery

The company recently reported an improvement in registrations, with May registrations rising to 14,752 units.

In a shareholder letter, founder and chief executive officer Bhavish Aggarwal said the company expects orders of 40,000-45,000 units in the first quarter of FY27.

"We expect consolidated revenue of Rs 500-550 crore in Q1 FY27, nearly double Q4 levels. As volumes recover, we expect the auto business to move towards adjusted operating EBITDA and free cash flow positivity through FY27," Aggarwal said.

He added that the company's strategic focus remains on electric vehicle products, particularly electric motorcycles and cell manufacturing.

Ola Electric shares fall ahead of announcement

Shares of Ola Electric closed 4.91 per cent lower at Rs 39.53 apiece on the BSE on Monday. The QIP announcement was made after market hours.

The floor price of Rs 37.74 per share represents a discount of around 4.5 per cent to Monday's closing price, providing institutional investors an opportunity to participate in the fundraising exercise as the company pursues its next phase of growth and manufacturing expansion.