Electrical car maker Ola Electrical has launched a certified institutional placement, or QIP, because it appears to be like to scale back debt and put money into its electrical car and battery companies.

The corporate has set a flooring value of Rs 37.74 per share for the problem. It might supply a reduction of as much as 5% on the ground value, with the ultimate difficulty value to be determined in session with the book-running lead managers.

The fundraising committee authorised the launch of the problem on 1 June and cleared the preliminary placement doc for institutional buyers, in line with a inventory change submitting.

The corporate’s board had earlier authorised plans to boost as much as Rs 1,500 crore by means of varied routes, together with a QIP. Stories mentioned the present QIP is anticipated to boost about Rs 500 crore.

A QIP permits listed corporations to boost cash from institutional buyers corresponding to mutual funds, insurance coverage companies, sovereign funds and overseas portfolio buyers with out going by means of a public difficulty.

Debt discount and growth plans

Ola Electrical plans to make use of a part of the proceeds to repay or prepay current borrowings taken by the mum or dad firm and its materials subsidiaries.

These borrowings embody time period loans and dealing capital amenities from banks and different lenders. Ola Electrical and its materials subsidiaries had sanctioned loans value Rs 2,520 crore as of 20 Might 2026, whereas the excellent quantity stood at Rs 1,637.61 crore.

The corporate mentioned lowering debt would strengthen its steadiness sheet by decreasing excellent liabilities and enhancing its debt-equity ratio.

“As well as, we consider that our debt fairness ratio will enhance, which is able to allow us to boost extra funds/capital at aggressive charges sooner or later to fund potential enterprise growth alternatives and plans to develop and broaden our enterprise sooner or later,” the corporate mentioned.

Ola Electrical additionally plans to make use of the proceeds to broaden its vertically built-in electrical car and power storage operations. This consists of investments in manufacturing, analysis and growth, provide chain, retail shops, service centres and buyer acquisition.

It goals to strengthen its electrical two-wheeler, lithium-ion cell and residential battery storage companies by means of investments within the Ola Futurefactory, Ola Gigafactory and in-house expertise growth.

Fundraising comes amid losses and weaker income

The fundraising comes as Ola Electrical faces continued losses, market share stress and robust competitors in India’s electrical two-wheeler market.

For the financial year ended March 2026, the corporate narrowed its consolidated internet loss to Rs 1,833 crore from Rs 2,276 crore a 12 months earlier.

Nevertheless, income from operations fell sharply to Rs 2,253 crore from Rs 4,514 crore within the earlier monetary 12 months, as car deliveries got here beneath stress.

Within the fourth quarter, Ola Electrical’s consolidated internet loss narrowed to Rs 500 crore from Rs 870 crore in the identical interval a 12 months earlier, helped by decrease bills. Within the earlier quarter, the corporate had reported a lack of Rs 487 crore.

The corporate’s auditors mentioned Ola Electric had initiated discussions with institutional buyers, considerably accomplished investor engagement and appointed advisers for the QIP in the course of the March quarter.

Shift to disciplined development

In a letter to shareholders for the March quarter, founder, chairman and managing director Bhavish Aggarwal mentioned Ola Electrical was transferring from a “heavy build-out” part to a “disciplined scale-up” part.

The corporate mentioned it achieved its first working cash-flow-positive quarter in This autumn FY26 and considerably decreased working bills.

Aggarwal mentioned the Ola Gigafactory and the corporate’s in-house 4680 Bharat Cells have been anticipated to grow to be a serious long-term benefit. The cells, which Ola Electrical has begun deploying in its automobiles, are geared toward enhancing vary and lowering general prices.

He additionally recognized power storage as the corporate’s subsequent main development alternative. Ola Electrical’s Shakti and Mahashakti merchandise goal residential, industrial and utility-scale battery storage demand, alongside development in electrical car adoption.

The corporate mentioned it was seeing early indicators of demand restoration, supported by enhancing service metrics, increased registrations and rising traction for its Roadster electrical bike portfolio.

Ola Electrical reported registrations of 15,139 items in Might 2026, up 23% from 12,323 items in April, in line with Vahan knowledge cited by the corporate.

“For Q1 FY27, we anticipate 40,000-45,000 orders and consolidated income of Rs 500-550 crore, almost double This autumn ranges. As volumes get well, we anticipate the auto enterprise to maneuver in direction of adjusted working EBITDA and free money circulation positivity by means of FY27,” Aggarwal mentioned within the shareholder letter.

He added that the corporate’s focus would stay on its electrical car merchandise, significantly electrical bikes and cell manufacturing.