Ola Electric Subsidiary Approves ₹877.64 Cr Investment in Ola Electric Technologies; Stock Down Nearly 2%

Bangalore, October 1, 2025 – Ola Electric Mobility Limited (NSE: OLAELEC, BSE: 544225) announced that its wholly owned subsidiary, Ola Cell Technologies (OCT), has approved up to ₹877.64 crore in investment in Ola Electric Technologies (OET). Investment will occur through the subscription of preference shares, although the company’s stock fell by almost 2% in trading on Tuesday.

Investment Structure

In a board meeting held on Tuesday, OCT sanctioned the acquisition of ₹ 87.76 crore worth of Series A Optionally Convertible Redeemable Preference Shares in OET, each with a face value of ₹10. There is a nominal 0.001% coupon on these shares. The funds will be disbursed in one or more tranches during the year, pending shareholder approvals granted as of September 30, 2025. This was consistent with the approvals received at the August AGM, where a variation was approved for the use of IPO proceeds.

About Ola Electric Technologies

Bengaluru-based OET was established in January 2021 and focuses on producing electric vehicles and critical EV components, such as battery packs, motors, and frames. The company leveraged its vertically integrated approach and direct-to-consumer distribution network to develop a strong internal research and development capability. The generated revenue for FY23 was ₹2,586 crore, which increased to ₹5,000 crore in FY24 and then decreased to ₹4,510 crore in FY25.

Market Reaction

Despite the strategic announcement, Ola Electric’s stock continued to remain under pressure. As of 3:00 p.m., the company’s shares closed at ₹55.50, representing a 2.55% decline from their previous close. Shares opened at ₹57.60, touched an intraday high of ₹58.65 and a low of ₹55.32, before closing at ₹56.00, down 1.67%. Investor sentiment was bearish, with sell orders significantly outweighing buy orders.

Outlook

The investment signals Ola’s commitment to scaling its EV and component business through OET. However, near-term stock performance may remain volatile amid muted investor sentiment and pressure on financial growth.

REF: https://nsearchives.nseindia.com/corporate/OLAELECTRIC_01102025122527_SE_Intimation_OCT_OEM.pdf

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