NewsCorporate ActionsOla Electric Tech Secures Rs 400 Crore Through Preferential Share IssuanceOla Electric Tech Secures Rs 400 Crore Through Preferential Share Issuance
Ola Electric Technologies, a subsidiary of Ola Electric Mobility Ltd., has approved raising Rs 400 crore by issuing Optionally Convertible Redeemable Preference Shares to Ola Cell Technologies. This is part of a larger Rs 877.64 crore commitment. Ola Electric Technologies focuses on EV development and production, while Ola Cell Technologies is establishing a lithium-ion cell manufacturing facility in Tamil Nadu. The company aims to fully utilize 1.4 GWh capacity of its '4680 Bharat Cell' by the end of the financial year and reach 5 GWh capacity by FY27.
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Ola Electric Technologies, a subsidiary of Ola Electric Mobility Ltd., has approved raising Rs 400 crore through a preferential issue of shares to Ola Cell Technologies, another subsidiary within the group. This move marks a significant step in the company's funding strategy and operational expansion.
Key Details of the Share Issuance
- Type of Shares: Optionally Convertible Redeemable Preference Shares
- Nominal Value: Rs 10 per share
- Total Commitment: This is the first tranche of a larger Rs 877.64 crore commitment
Company Overview
Ola Electric Technologies, incorporated in 2021, is at the forefront of electric vehicle (EV) development and production. The company operates through vertically integrated operations, focusing on both vehicles and components.
Financial Performance
| Fiscal Year | Turnover (in Crore) |
|---|---|
| FY25 | 4,510.00 |
| FY24 | 5,000.00 |
Ola Cell Technologies: A Strategic Partner
Ola Cell Technologies, incorporated in July 2022, is establishing a lithium-ion cell manufacturing facility in Tamil Nadu. This facility is set to serve as a captive battery cell manufacturer for the Ola Group, highlighting the company's focus on vertical integration within the EV ecosystem.
Battery Production Outlook
- Current Capacity: Expected to fully utilize 1.4 GWh capacity of its '4680 Bharat Cell' by the end of the financial year
- Future Projection: Aims to reach 5 GWh capacity by FY27
Market Performance
Ola Electric Mobility, the parent company, has seen its shares face challenges in the market:
- Current Share Price: Rs 52.62 (closed flat)
- Year-to-Date Performance: Declined nearly 40%
This funding move comes at a crucial time for Ola Electric Technologies, as it seeks to strengthen its position in the rapidly evolving electric vehicle market. The investment from Ola Cell Technologies underscores the group's commitment to enhancing its manufacturing capabilities and achieving greater self-reliance in key components like battery cells.
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