Ola Electrical CEO Bhavish Aggarwal has pledged a 4.32% stake within the Indian electrical two-wheeler maker to fund his participation within the firm’s proposed rights issue of as much as Rs 1,000 crore.

The pledge covers 20 crore Ola Electric shares held by Aggarwal, in accordance with share-pledge disclosures. The shares have been pledged in reference to non-convertible debentures issued by Krutrim Information Centre Personal Restricted, with CTL Trusteeship Restricted named because the trustee.

Ola Electrical stated the pledge had been created solely to fund Aggarwal’s subscription to the rights concern and that there have been at the moment no different pledges on his securities.

“No shares are being offered. The promoter will make investments alongside all different shareholders on the identical phrases,” the corporate stated in an announcement on October 4.

The corporate has not disclosed the quantity being raised in opposition to the pledged shares or how a lot Aggarwal will finally put money into the rights concern.

Ola Electrical plans rights concern of as much as Rs 1,000 crore

Ola Electrical’s board authorised the proposed rights concern of partly paid-up fairness shares on September 28. The corporate additionally filed its Draft Letter of Provide on the identical day.

In response to the draft provide doc, about Rs 350 crore of the proceeds are proposed for use for reimbursement or prepayment of sure borrowings, whereas Rs 400 crore has been allotted for natural progress initiatives. The remaining proceeds, after issue-related bills, are supposed for normal company functions.

Aggarwal has confirmed that he intends to subscribe to his rights entitlement.

The corporate stated in a September 28 trade submitting that its board would meet on October 5, or after it receives the required in-principle approvals from the inventory exchanges or different regulatory authorities, whichever is later, to find out the particular phrases of the difficulty.

These embrace the rights concern value and fee mechanism, entitlement ratio, file date, timing and different associated issues.

A rights concern permits a listed firm to boost capital by providing new shares to eligible present shareholders, often in proportion to their present holdings.

The fundraising comes after Ola Electrical reported a pointy year-on-year decline in income within the first quarter of FY27, though its registrations improved considerably from the earlier quarter.

Income from operations fell about 45% to Rs 455 crore within the quarter ended June 30, 2026, from Rs 828 crore in the identical interval a 12 months earlier.

Its consolidated web loss narrowed to Rs 336 crore from Rs 428 crore in Q1 FY26, an enchancment of about 21.5%.

Follows Rs 780 crore QIP in June

The proposed rights concern follows a QIP accomplished by Ola Electrical in June.

The corporate allotted 21.76 crore fairness shares to QIB at Rs 35.86 per share, elevating as much as Rs 780.24 crore, in accordance with its June 4 trade submitting.

Aggarwal and the promoter group held a mixed 32.97% stake in Ola Electrical as of the tip of June 2026.

The most recent pledge permits Aggarwal to boost funds for his subscription to the rights concern with out promoting the pledged Ola Electrical shares.