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Ola Electric stock slips after ₹1,500 crore fundraise
The raise comes with Ola’s electric two-wheeler registrations falling 29% year-on-year in August and its market share dropping to 7.6% from 17.7% a year earlier, reinforcing investor concerns.
Ola Electric’s stock fell 1.5% after the company announced a fundraise of up to ₹ 1,500 crore, a move that did not revive investor confidence despite adding runway for its turnaround and heavy spending on manufacturing and battery technology, according to LiveMint Markets. The latest raise followed a qualified institutional placement of ₹ 780 crore just three months earlier, after which the shares dropped 13%.
Investors also appear to be focused on deteriorating operating momentum. In August, Ola registered 13,916 electric two-wheelers, down 29% year-on-year even as the industry grew 68%, with market share sliding to 7.6% from 17.7% a year earlier based on Vahan data.
The report highlights additional concerns around leadership stability and regulatory scrutiny. Ola’s senior management churn has included multiple resignations after the chief financial officer stepped down in January and its company secretary and compliance officer left twice within roughly a year, and chief operating officer Hyun Shik Park resigned, who had been responsible for strategic work on a gigafactory for mass-manufacture of battery cells.
Ola has been expanding manufacturing capabilities and shifting from a direct-to-consumer model to dealer-led distribution, but earnings have yet to reflect the changes. In the June quarter (Q1FY27), net loss narrowed to ₹ 336 crore, with revenue down to ₹ 455 crore from ₹ 828 crore a year earlier, and the adjusted EBITDA loss widened to 43% of revenues from 36%.