Ola Electric Approves ₹1,700 Crore Debt Fundraising Plan via NCDs

Ola Electric Mobility Ltd, one of India’s fastest growing electric vehicle (EV) companies, has announced a major fund raise today ahead of its Board of Directors meeting today. The firm has given its nod to issue debt securities comprising NCDs, for an aggregate amount of up to ₹1,700 crore on private placement basis or other available route, it added.

Key Highlights from the Board Meeting

• Fundraising Method: The eligible instruments would include term loans, working capital loans and/or issuance of Non-Convertible Debentures (NCD).
• Amount: Total Fund raise is limited to ₹1,700 crore and further the issue may be completed in one or more tranches.
• Issuance Route: The capital will be raised through private placement or any other method allowed under prevailing laws.
• Utilization: Though the specific deployment was not disclosed, such fundraising is typically aligned with working capital needs, growth expansion, and future product development in the EV segment.

Regulatory Disclosure

The company made the disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It also referenced SEBI’s circular dated November 11, 2024, ensuring compliance with updated procedural norms for debt issuances.

Trading Window Update

In accordance with SEBI’s Insider Trading regulations, the trading window for dealing in Ola Electric securities has been closed since April 1, 2025, and will reopen 48 hours post the declaration of the company’s financial results.

Debt Instrument Details

The terms including interest rate, maturity profile, listing status etc would be decided as and when the offer is made but through issuance of NCDs will be approved by the Board, in accordance with the provisions of applicable guidelines and subject to market conditions.

Strategic Implications

This move signals Ola Electric’s intent to strengthen its financial base as it expands production capacity, invests in battery innovation, and scales its EV infrastructure. The ₹1,700 crore fundraising indicates a robust outlook and a proactive approach to tapping debt markets amidst India’s accelerating EV transition.

Outlook

Approval for fundraising shows Ola Electric’s readiness to finance its ambitious electric vehicle roadmap with a well-defined and compliant fundraising plan.

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REF: https://nsearchives.nseindia.com/corporate/OLAELECTRIC_22052025194326_Outcome_Board_Meeting_OEM.pdf