Ola Electric Mobility shares experienced a notable increase of 19.5%, reaching Rs 35.78 on Tuesday, October 27, following attention on the company’s Rs 1,000 crore rights issue. The rights issue commenced on October 22 and is set to conclude on October 30. The company plans to issue 37.03 crore partly paid-up shares at a price of Rs 27 per share, with an immediate payment of Rs 16.20 required.
Motilal Oswal Financial Services and Calliope Capital Advisors have shown interest by applying for 2.39 crore shares. Founder Bhavish Aggarwal has also pledged a 4.32% stake to enhance his investment participation.
SoftBank’s Stake Sale and Market Dynamics
This surge in Ola Electric shares comes on the heels of SoftBank affiliate SVF II Ostrich (DE) LLC selling part of its stake in the company. A regulatory filing indicated that the investment entity sold shares and rights entitlements between January 6 and October 22, effectively lowering its ownership from 12.9% to 11.7%.
Ather Energy’s Performance Impact
Ola Electric’s shares also benefitted from a 14% increase in Ather Energy shares on Monday, after the competitor announced a surprising turnaround in Q2 FY27. Ather Energy reported a net profit of Rs 1.26 crore, rebounding from a loss of Rs 154 crore in the same quarter last year.
According to Vahan data, Ola Electric holds the fifth position in the market with 13,449 registrations, accounting for a 6.49% market share. This figure reflects a decline of 3.53% from the 13,941 units registered in August.
Financial Overview
The company has yet to release its Q2 FY27 results. However, in Q1 FY27, Ola Electric reported a revenue drop of 45% year-on-year, decreasing to Rs 455 crore from Rs 828 crore recorded in Q1 FY26. Additionally, its losses expanded by 21%, amounting to Rs 336 crore.
As a result of these developments, Ola Electric’s share price closed over 16% higher at Rs 34.8 per share, bringing the total market capitalisation to Rs 17,395 crore ($1.83 billion).