Ola Electric draft rights issue up to Rs 1,000 crore

BENGALURU: Ola Electric Mobility Limited has filed a Draft Letter of Offer dated 28 September 2026 for a rights issue of partly paid-up equity shares aggregating up to Rs 1,000 crore to eligible equity shareholders, according to documents posted on the company's investor relations rights-issue page. The draft is for private circulation to eligible shareholders and remains subject to regulatory process and a final Letter of Offer.

Issue price, premium, entitlements ratio and the record date are shown as placeholders in the draft. Those commercial terms have not been finalised in the version reviewed on 1 October 2026. The company directs investor queries to ir@olaelectric.com and lists Deepa Bansal as company secretary and compliance officer. Promoter Bhavish Aggarwal is named on the cover of the draft.

What the draft says the money is for

In the Objects of the Issue section, Ola Electric proposes to use net proceeds for three purposes: repayment or pre-payment, in part or in full, of certain outstanding borrowings, interest and prepayment penalties of the company and its material subsidiaries; expenditure on organic growth initiatives; and general corporate purposes. Gross proceeds are stated as up to Rs 1,000 crore, assuming full subscription and receipt of call monies; net proceeds after issue expenses are left as placeholders.

The rights equity shares are to be partly paid, with face value of Rs 10 each. The payment schedule in the draft shows an application instalment and a first and final call expected to be completed on or prior to 31 October 2027, though the board retains flexibility to change the call timing subject to applicable law. Exact rupee amounts per share for face value, premium and total are not filled in.

The draft also notes that because the objects involve financing other than project capital expenditure, and because the promoter group has undertaken to subscribe fully to its rights entitlement subject to permitted exceptions, the usual 90 percent minimum subscription requirement under SEBI ICDR rules is stated as not applicable.

SEBI show-cause and settlement application

The draft summary of outstanding litigation discloses a show-cause notice dated 10 April 2026 from a SEBI adjudicating officer to the company and to promoter Bhavish Aggarwal in his capacity as chairman and managing director. The notice alleges false or misleading disclosures in late 2024 and early 2025 about store and service-centre expansion and about February 2025 electric vehicle sales figures, among other points. These are allegations in a pending regulatory proceeding, not findings of misconduct.

According to the draft, the company completed an inspection of records on 11 May 2026 and filed an application for settlement with SEBI on 8 June 2026. That settlement application is described as currently pending. The draft states that if the allegations were established, monetary penalties could follow under the SEBI Act. Dalimss News is reporting the matter only as disclosed in the company's own draft offer document.

What shareholders still need

Eligible shareholders will need the final Letter of Offer for price, ratio, record date, timelines and any update on the SEBI matter. Existing shares trade on BSE and NSE; the draft says the company has sought in-principle listing approvals for the rights shares, with approval letter dates also left blank. This story relies on the Draft Letter of Offer PDF hosted by Ola Electric and the rights-issue page on olaelectric.com.