Ola Electric Mobility Limited has published newspaper advertisements across multiple languages regarding its postal ballot notice for a strategic reallocation of Initial Public Offering proceeds worth ₹575.00 crores. The company published advertisements on March 24, 2026, in Financial Express (English), Vishwavani (Kannada), and Jansatta (Hindi) newspapers, following the dispatch of the postal ballot notice dated March 18, 2026.

Regulatory Compliance and Advertisement Submission

The company submitted copies of newspaper advertisements to National Stock Exchange of India Limited and BSE Limited under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. Company Secretary and Compliance Officer Abhishek Jain (Membership No. A62027) signed the submission letter from Bengaluru.

E-Voting Schedule and Process

The postal ballot notice seeks shareholder approval through remote e-voting for reallocating funds from research and development activities to organic growth initiatives and debt repayment. The company has engaged National Securities Depository Limited (NSDL) to provide the e-voting platform.

IPO Proceeds Reallocation Framework

The proposed variation involves reallocating ₹575.00 crores from Object 3 (Investment into research and product development) to two strategic areas. The company raised a total of ₹5,500.00 crores through its public offering, with ₹1,295.63 crores remaining unutilized as of March 11, 2026.

Revised Fund Allocation Structure

Following the proposed changes, the revised allocation across different objectives will be:

Strategic Rationale and Market Context

The company's management cited evolving market dynamics in the Indian electric two-wheeler industry as justification for the reallocation. Industry growth has moderated to approximately 15% in the first three quarters, compared to 26% year-on-year growth from previous periods. Electric penetration within the overall two-wheeler market has reached around 6%.

Since incorporation, the company has invested approximately ₹2,000 crores in research and development to build deep technology capabilities across the EV value chain. The company has successfully stabilized its Gen3 platform, which delivers improved product quality, stronger unit economics, and greater differentiation across the portfolio.

Scrutinizer Appointment and Timeline

The Board of Directors has appointed Mr. Pramod SM (FCS No.: 7834 CP No.: 13784) or Mr. Biswajit Ghosh (FCS: 8750, CP No.: 8239) from M/s. BMP & Co. LLP as scrutinizers for conducting the postal ballot through remote e-voting process. The resolution, if approved, will be deemed passed on April 22, 2026, marking the second variation in IPO proceeds utilization following the first variation approved during the 8th Annual General Meeting held on August 22, 2025.

The company and its subsidiaries have entered into financing arrangements with banks and financial institutions, collectively amounting to approximately ₹2,602 crores outstanding as of March 11, 2026. The proposed debt repayment is expected to help reduce outstanding indebtedness and maintain a favorable debt-equity ratio.

Ola Electric Mobility faces continued pressure from analysts as Citi maintains its Sell rating while reducing the target price significantly. The brokerage has cut its target price to ₹22 from the previous ₹27, reflecting growing concerns about the company's market position and financial trajectory.

Revenue Estimate Revisions

Citi has implemented substantial cuts to revenue estimates across multiple fiscal years, with reductions ranging from 5% to 14% for the FY26-28 period. The primary drivers behind these downward revisions include market share loss and slower-than-expected electric vehicle adoption in the Indian market.

Profitability and Cash Flow Concerns

The brokerage has expressed skepticism about the company's path to profitability, indicating that EBITDA break-even appears unlikely by FY28. This assessment reflects the challenging operating environment and competitive pressures facing the electric vehicle manufacturer. Additionally, Citi has highlighted concerns regarding weak cash generation capabilities, which could impact the company's financial flexibility and growth investments.

Valuation Assessment

Despite the challenges, Citi notes that Ola Electric's current valuation stands at approximately 3.5x FY27E EV/Sales, which represents about a 10% discount to industry peers. This valuation metric suggests that while the stock trades at a discount, the underlying operational challenges continue to weigh on the investment thesis.

The combination of market share erosion, slower EV adoption rates, and profitability concerns has led to the maintained Sell recommendation, indicating that Citi believes the current challenges outweigh the valuation discount relative to peers.