Ola Electric promoter Bhavish Aggarwal pledges 4.32% stake to fund rights issue subscription

Ola Electric Mobility Ltd promoter Bhavish Aggarwal has pledged a 4.32% stake in the company to participate in the rights issue approved by the board, the company said on Sunday (October 4).

The pledge is solely to fund Aggarwal’s subscription to the rights issue, as disclosed in the Draft Letter of Offer filed on September 28, Ola Electric said. The company added that there are no other pledges on his securities currently and no shares are being sold.

Aggarwal will invest in the rights issue alongside all other shareholders on the same terms, according to the company statement.

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Last month, Ola Electric Mobility’s board approved a rights issue of partly paid-up equity shares to raise up to ₹1,000 crore, subject to regulatory and statutory approvals. The issue will be open to eligible shareholders as of a record date, which will be announced later.

The company said the shares will have a face value of ₹10 each. However, key details such as the issue price, rights entitlement ratio, record date, timing and payment terms are yet to be decided by the board.

Ola Electric said the rights issue will be carried out in line with applicable laws and SEBI regulations. The company will disclose the detailed terms to the stock exchanges later.

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The proposed fundraise comes just months after Ola Electric raised ₹780 crore through a qualified institutional placement, or QIP, in June. The issue was oversubscribed by 56%.

The QIP attracted long-term institutional investors, including Goldman Sachs and BNP Climate Fund, along with Indian mutual funds such as Motilal Oswal Mutual Fund, Mirae Asset Mutual Fund, Kotak Mahindra Mutual Fund, JM Financial Mutual Fund and Baroda BNP Paribas Mutual Fund.

Ola Electric’s Fund Raising Committee subsequently approved the closure of the QIP after receiving applications and funds from eligible institutional investors.

On Thursday (October 1), shares of Ola Electric Mobility Ltd ended at ₹37.09, up by ₹0.14, or 0.38%, on the BSE.

ALSO READ | Ola Electric Mobility closes QIP, raises ₹780 crore; issue oversubscribed 56%