Ola Electric has launched a Qualified Institutional Placement (QIP) to raise fresh capital from institutional investors and has fixed the floor price at ₹37.74 per share. The decision was approved by the company’s Fund Raising Committee, which also cleared the preliminary placement document and application forms to be circulated among eligible institutional buyers.
The Bhavish Aggarwal-led firm has stated that the floor price has been determined according to SEBI regulations, with June 1 being considered the relevant date for pricing calculations. It has also retained the option to offer a discount of up to 5% on the floor price during the final allotment process.
The fundraising move comes after approvals granted by Ola Electric’s board in October 2025 and shareholders in November 2025. At that time, the company had approved plans to raise as much as ₹1,500 crore through a mix of equity shares and convertible securities using routes like QIP, private placements or rights issues. Therefore, the latest QIP is part of a broader capital-raising strategy that has been under preparation for several months as the company looks to strengthen its balance sheet and secure funds for future expansion.
The timing is significant because Ola Electric continues to face financial pressure despite remaining one of India’s largest electric two-wheeler manufacturers. The company has been dealing with slowing demand, margin pressure and high cash burn while investing aggressively in manufacturing, battery technology and product development.
In the March quarter of FY26, Ola Electric reported revenue from operations of just ₹265 crore, a sharp 56.6% year-on-year decline from ₹611 crore in the corresponding quarter last year and a 43.6% sequential fall from ₹470 crore in Q3 FY26. The company posted a consolidated net loss of ₹500 crore during the quarter, although this was lower than the ₹870 crore loss reported a year earlier due to aggressive cost-control measures. For the full FY26 year, revenue from operations stood at ₹2,253 crore, down around 50% from ₹4,514 crore in FY25, while annual losses remained elevated at around ₹1,829 crore.
Meanwhile, the company’s stock performance shows the mixed sentiment surrounding its future. Ola Electric had listed on the stock market at ₹91.18 against its IPO issue price of ₹76, but the stock has since witnessed a sharp correction. By late May, the share price was trading around the ₹39-40 range, meaning the QIP floor price of ₹37.74 has been set only slightly below prevailing market levels. The fresh capital is expected to support battery manufacturing, new product development, capacity expansion and working capital requirements at a time when competition from established players like Bajaj Auto and TVS Motor Company continues to intensify.
Operationally, Ola Electric has shown signs of improvement in certain areas despite ongoing losses. The company has previously reported positive EBITDA in parts of its core auto business, improving gross margins and better vehicle registration trends. Investor presentations released recently showed deliveries of more than 20,000 vehicles during the latest quarter and orders exceeding 22,000 units.
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Ashutosh is a Senior Writer at The Tech Portal, largely reporting on new tech, and intersection of technology and business. Ashutosh’s career spans across nearly a decade of technology writing across multiple platforms and languages.
