In a strategic move to bolster its financial position and fuel ongoing expansion, Ola Electric Mobility Limited has announced that it will be convening a board meeting on Thursday, May 22, 2025, to deliberate on raising capital through the issuance of Non-Convertible Debentures (NCDs) or other permissible financial instruments. The company formally disclosed this development in a regulatory filing submitted to the stock exchanges on May 19, 2025.
The proposed fundraising is expected to support Ola Electric’s aggressive growth ambitions, particularly as the company intensifies its push to become a key player in India’s burgeoning electric vehicle (EV) ecosystem. While the specifics of the proposed instrument—such as the quantum of funds, tenure, coupon rate, and structure—remain undisclosed at this stage, the company has made it clear that the board will explore multiple options within the framework of applicable regulations.
Ola Electric’s decision to consider NCDs, which are fixed-income instruments that cannot be converted into equity, signals the company’s intention to secure debt funding without diluting existing shareholder value. This move could provide the company with a stable source of capital to fund capital expenditure, expand manufacturing capabilities, enhance R&D efforts, and scale its retail and service network.
Industry observers note that this fundraising initiative comes at a pivotal moment for Ola Electric, which has been making headlines for its ambitious plans in the EV space—including the upcoming launch of its electric motorcycles and progress on its indigenous battery cell manufacturing facility.
Ola Electric, a subsidiary of ANI Technologies—the parent company of Ola Cabs—has positioned itself as a disruptor in the clean mobility segment since launching its first electric scooters in 2021. With India targeting 30% EV penetration by 2030 and various government incentives accelerating the transition to electric mobility, Ola Electric is gearing up to capitalize on this transformation.
In recent months, the company has made substantial investments in expanding its “Futurefactory” in Krishnagiri, Tamil Nadu, which it touts as the world’s largest two-wheeler manufacturing plant. Additionally, the firm is actively working on building a vertically integrated EV ecosystem, from lithium-ion cell manufacturing to software integration and charging infrastructure.
This proposed debt raise also comes amid ongoing speculation that Ola Electric may be preparing for a public listing. Reports from early 2025 suggested that the company had filed preliminary papers with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO), eyeing a valuation north of ₹30,000 crore. The proposed NCD issuance could be part of a pre-IPO capital raising effort to clean up the balance sheet or to meet funding requirements before hitting the public markets.
While the fundraising plan is yet to be finalized, the company’s announcement has already sparked interest among analysts and investors. NCDs offer institutional investors and high-net-worth individuals an attractive alternative to equity in terms of steady returns, and Ola’s brand recognition coupled with its sectoral prospects could make the issuance well-received in the market.
As the board prepares to meet this Thursday, stakeholders will be keenly watching for concrete details and strategic signals. If approved, the capital raised will likely play a crucial role in the next phase of Ola Electric’s journey toward becoming a dominant force in the global EV industry.
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