Ola Electric Gets Shareholders’ Nod To Alter Use Of IPO Proceeds

EV major Ola Electric has received the approval from its shareholders to alter the use of INR 5,500 Cr it raised from its IPO last year. 

The company said that it received 99.1% votes in favour of its resolution for variation in the objects of utilisation of the IPO proceeds and extension of time limit for utilisation of the proceeds.

While the company has utilised INR 1,227.6 Cr set aside to expand its cell manufacturing plant, it has now revised the R&D expenditure to INR 1,505 Cr. This is a reduction of INR 95 Cr from the initially proposed INR 1,600 Cr investment. 

For R&D, Ola Electric has already utilised INR 1,144.5 Cr and now plans to invest INR 550 Cr in FY26 and about INR 500 Cr in the next fiscal year. 

Meanwhile, the company will increase the expenditure for organic growth initiatives by 3.4X to INR 1,200 Cr from the initially proposed INR 350 Cr. As of now, the company has utilised INR 50.8 Cr for this.

As of June 2025, Ola Electric had utilised INR 2,594 Cr of the INR 5,275 Cr it raised from the IPO. While INR 2,800 Cr investment was set aside for its entity Ola Electric Technologies Pvt Ltd, INR 1,337 Cr was reserved for Ola Cell Technologies Pvt Ltd. 

Besides, the company has added a new INR 395 Cr component for repayment or prepayment of debt. In its Q1 investor presentation, the company estimated its debt obligations to be at INR 526 Cr for FY26, down slightly from INR 622 Cr debt in the previous fiscal year. 

In its Q1 earnings call, Ola Electric chairman and managing director Bhavish Aggarwal said that excluding short-term debt, which is largely working capital, the company’s debt repayment obligation stood at INR 2,000 Cr. While the corporate debt will be paid over the next two years, its term loans will continue. 

It is also pertinent to mention that the company is planning to raise fresh funds to refinance its debt. “We will be refinancing some of that debt, not the term loans, but some of the corporate debt that we had taken before our IPO. And we have already taken board approval for issuing fresh NCDs to refinance that debt,” Aggarwal said during the call.

In May this year, the company’s board approved a proposal to raise up to INR 1,700 Cr debt via NCDs, term loans, working capital facilities, or any other eligible debt securities.

On the financial front, Ola Electric’s net loss widened to INR 428 Cr in Q1 FY26 from INR 347 Cr in the year-ago quarter. Revenue dropped nearly 50% to INR 828 Cr during the quarter under review from INR 1,644 Cr in the same quarter last year. Sequentially, operating revenue jumped 35.5% from INR 611 Cr.

Last week, the company made a number of new announcements at its annual event, including the launch of new S1 Pro Sport escooter, integration of its in-house produced 4680 battery cell into S1 Pro Plus escooter and Roadster X Plus motorcycle, among others. 

Shares of Ola Electric ended today’s trading session 3.38% lower at INR 47.18. The stock is down 38% from its IPO issue price of INR 76.