Ola Electric Technologies (OET), a wholly owned subsidiary of Ola Electric, recently received approval from its board and shareholders to raise ₹877.6 crore via issuance of 87.76 crore non-cumulative, non-participating Series A Optionally Convertible Redeemable Preference Shares (OCRPS). This infusion is aimed at strengthening Ola’s EV ecosystem, particularly supporting Ola Cell Technologies (OCT) through preferential allotment.
The funding is intended to expand indigenous cell development and scale up electric vehicle manufacturing capabilities. As OET handles vehicle platforms and battery technology, OCT will focus on cell research and development, aligning with Ola’s push for vertical integration and lowering dependence on imported battery cells.
This move also reflects a strategic reallocation of Ola Electric’s IPO proceeds. Following its ₹5,500 crore IPO in August 2024, Ola Electric adjusted uses of funds, with allocations for R&D, organic growth, debt repayment, and general corporate purposes. The structured capital deployment underlines the company’s commitment to sustainable growth and technological leadership in the EV space.
With the fresh capital, Ola plans to increase OCT’s cell manufacturing capacity from 5 GWh to 6.4 GWh, enhancing its ability to support expanding EV production needs. This step is expected to bolster supply chain resilience and reduce risks from global battery supply constraints.
The ₹877.6 crore funding via preferential allotment reaffirms Ola Electric’s strategic vision: invest in cutting-edge battery tech, vertically integrate operations, and solidify its leadership in India’s electric mobility market. By backing cell development and manufacturing expansion, the company is poised to accelerate electric two-wheeler adoption and support India’s green mobility ambitions.
