Ola Electric’s ₹1,000 Cr rights issue is set to open for subscription onOctober 22 and close on October 30, its board of directors finalised today. The last date for on-market renunciation of rights entitlements has been set at October 26.
At an issue price of ₹27 per share, the company expects to raise ₹999.74 Cr, assuming full subscription and payment of call monies. To note, the issue price is set at a discount of over 5% to Ola Electric’s closing price today (₹36.30).
The rights issue will comprise 37.03 Cr partly paid-up equity shares with a face value of ₹10 each. Shareholders will be entitled to two rights shares for every 25 fully paid-up equity shares held as of the record date of October 13.
The ₹27 issue price includes a ₹17 premium. Shareholders will have to pay ₹16.20 per share, or 60% of the issue price, on application. The remaining ₹10.80 per share will be payable through a first and final call.
The company’s board approved the rights issue on September 28. Following that, founder and CMD Bhavish Aggarwal pledged a 4.32% stake in the electric two-wheeler maker to fund his participation in the rights issue.
Ola Electric plans to split the proceeds between debt reduction, business expansion and general corporate requirements.
The company has earmarked ₹350 Cr for repaying or prepaying borrowings at Ola Electric and its material subsidiaries. The allocation will also cover accrued interest and any applicable prepayment penalties.
A larger ₹400 Cr will be directed towards organic growth, with the company planning to invest across its electric mobility and energy storage businesses.
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