Ola Electric Mobility Ltd , a prominent player in India's electric vehicle market, is exploring high-yield debt financing options to bolster its working capital amidst a challenging business environment. The company has initiated preliminary discussions with lenders to raise approximately ₹1,000 crore ($116 million) through this financing route.

Potential Financing Terms

According to sources familiar with the matter, the proposed debt financing could have the following characteristics:

Market Challenges

The company's move to seek high-yield debt comes against a backdrop of significant market challenges:

• Share Price Decline: Ola Electric's shares have experienced a sharp decline of about 50% this year
• Market Share: The company has faced a declining market share following its Initial Public Offering (IPO)
• Product Issues: Scooter fire incidents have impacted the company's reputation and sales

Founder's Actions

In response to these challenges, Ola Electric's founder, Bhavish Aggarwal, has taken steps to shore up investor confidence:

• Increased Collateral: Aggarwal reportedly paid about ₹20 crore in cash to increase collateral for share-backed borrowings

Company Response

When approached for comment, an Ola Electric spokesperson provided a measured response:

• Described the working capital raising as a routine business practice
• Declined to provide further comments on the ongoing discussions

This potential high-yield debt financing move by Ola Electric underscores the challenges faced by the electric vehicle sector in India, particularly for companies navigating the post-IPO landscape amidst product-related concerns and intense market competition.

Ola Electric Mobility Limited , a prominent player in the electric vehicle industry, has announced significant changes in its corporate structure and financial planning. The company's Board of Directors has made key decisions that could impact its future operations and governance.

IPO Proceeds Utilization Changes

The Board of Directors of Ola Electric has approved a proposed variation in the utilization of Initial Public Offering (IPO) proceeds. This decision also includes an extension of the time limit for the utilization of these funds. While the specifics of these changes have not been disclosed, the company stated that these modifications are subject to shareholder approval.

New Secretarial Auditors Appointed

In a move to strengthen its corporate governance, Ola Electric's board has approved the appointment of M/s. BMP & Co. LLP as the company's Secretarial Auditors. The appointment is for a period of five consecutive years, starting from April 1, 2025, to March 31, 2030. This decision is also pending shareholder approval at the upcoming 8th Annual General Meeting (AGM).

About BMP & Co. LLP

BMP & Co. LLP, the newly appointed Secretarial Auditors, is a well-established firm of practicing company secretaries. Founded in 2017, the firm has offices in Bengaluru, Mumbai, and Delhi (NCR). They specialize in a wide range of services including:

• Corporate Secretarial Services
• Secretarial Audit
• SEBI compliances
• Initial Public Offerings (IPO) related work
• Foreign Direct Investment and Overseas Direct Investment under FEMA
• Mergers & Amalgamations
• Business Setup
• Fund Raise compliance

The firm has undergone peer review and provides services to diverse sectors, including listed corporates, multinational companies, startups, venture capital firms, and law firms.

Board Meeting Details

The crucial board meeting where these decisions were made was held on July 25, 2025. The meeting commenced at 08:15 PM (IST) and concluded at 08:45 PM (IST). Ola Electric has stated that a detailed notice for shareholder approval will be issued in due course.

These developments indicate Ola Electric's commitment to maintaining transparency and adhering to regulatory requirements. The company's decision to revise its IPO proceeds utilization strategy could potentially signal shifts in its business focus or investment priorities. Shareholders and market observers will be keenly awaiting further details on these changes and their potential impact on the company's future trajectory in the competitive electric vehicle market.