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4h ago

Ola Electric Shareholders Back IPO Fund Reallocation as Stock Enters Short-Term ASM

A near-unanimous vote redirects unused proceeds to organic expansion, including a dedicated debt-repayment pool.

Bhavish Aggarwal, chairman and managing director, Ola Electric Mobility.
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Overview

  • Roughly 99% of investors approved varying the use of IPO proceeds, lifting the organic growth allocation to INR 1,200 crore and trimming R&D to INR 1,505 crore.
  • The company added a new INR 395 crore bucket for repayment or prepayment of debt and signaled plans to refinance corporate borrowings with board approval to issue fresh NCDs.
  • Unutilised balances now stand at INR 1,049 crore for R&D, INR 901 crore for organic growth, INR 395 crore for debt service and INR 248 crore for general corporate purposes.
  • Shares fell 3.38% to INR 47.18, and both NSE and BSE placed the stock under the short-term Additional Surveillance Measure framework following sharp price swings.
  • Management said IPO funds have already supported cell-plant expansion, and recent announcements include a ferrite motor, 4680 Bharat Cell integration, new two-wheeler models and MoveOS 6.