Ola Electric launches ₹1,500 crore QIP at ₹37.74 floor price as May sales surge 23% month-on-month
Ola Electric Mobility launched a qualified institutional placement today with a floor price of ₹37.74 per share, marking the company’s first major post-IPO capital raise. The electric vehicle manufacturer has launched the QIP to raise fresh capital from institutional investors, with the board having earlier approved plans to raise as much as ₹1,500 crore through equity shares and convertible securities. The company may offer a discount of up to 5% on the floor price during the final allotment process.
The fundraising announcement comes as Ola Electric announced sustained growth momentum in May 2026, with registrations rising to 15,139 units, up from 12,323 units in April. This represents a 23% month-on-month increase, building on the recovery momentum seen in the months of March and April 2026. The company’s performance proved particularly strong against the broader market backdrop, as industry volumes grew from approximately 148,000 units in April 2026 to around 170,000 units in May 2026, reflecting growth of about 15%, whilst Ola Electric delivered 23% month-on-month growth, growing nearly three times faster than the industry.
Company executives attributed the sales recovery to operational improvements and market conditions. The third consecutive month of robust sales recovery comes on the back of a front-end retail rejig and better operational execution, as Ola’s two-wheeler EV portfolio bounces back amid petrol price increases, marking a broader market shift to electric vehicles. Electric two-wheeler brands like Ola Electric, Ather Energy and Hero Electric have seen a surge in walk-in enquiries lately, with petrol prices standing at ₹102.12 per litre in New Delhi and ₹111.18 per litre in Mumbai.
The QIP proceeds will serve multiple strategic purposes for the Bengaluru-based manufacturer. Ola Electric and its material subsidiaries had sanctioned loans worth ₹2,520 crore till 20th May 2026, with the outstanding amount currently standing at ₹1,637.61 crore. The EV major intends to utilise a chunk of the QIP proceeds to scale its vertically integrated EV and energy storage business across manufacturing, R&D, supply chain, stores, service centres, and customer acquisition, aiming to strengthen its E2W, lithium-ion cell, and residential battery storage operations through investments in the Ola Futurefactory, Ola Gigafactory, and in-house tech development.
The capital raise arrives at a critical juncture for Ola Electric’s financial trajectory. For FY26, the company managed to narrow its net loss by nearly 20% to ₹1,833 crore from ₹2,276 crore in the previous fiscal, however, operating revenue more than halved to ₹2,460 crore from ₹4,932 crore in FY25 as vehicle deliveries came under pressure amid service-related challenges and weak consumer demand. The company reduced its physical store network from nearly 4,000 outlets to approximately 700 as part of comprehensive cost restructuring efforts.
Market sentiment around the fundraise remains cautious. 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, with the share price trading around the ₹39-40 range by late May, meaning the QIP floor price of ₹37.74 has been set only slightly below prevailing market levels. The company faces intensifying competition from established players including Bajaj Auto and TVS Motor Company, whilst analysts remain divided on the manufacturer’s medium-term recovery prospects despite the recent sales momentum.
المصدر: Swarajya
