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Ola Electric rights issue — what shareholders should check

By Sumit Bhardwaj, Angel One Authorised Person · Updated 20 October 2026

If you hold Ola Electric shares, you now have a decision to make on the rights issue. Here are the disclosed facts and the questions worth asking.

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Rights issue facts

• Size: up to 37.03 crore partly paid shares, aggregating up to ₹999.74 crore.
• Price: ₹27 per share — ₹16.20 on application, ₹10.80 on a later call expected on or before 31 Oct 2027.
• Ratio: 2 rights shares for every 25 held on the record date, 13 October 2026.
• Issue period: 22–30 October 2026.
• The founder pledged 20 crore shares (4.32% of equity) to fund his own subscription, as reported by BusinessLine.

Disclosed risks

• Pending SEBI proceeding: the offer document records an April 2026 SEBI show-cause notice alleging misleading disclosures (for example, February 2025 "sales" figures that SEBI says were orders). A settlement application is pending. These are allegations, not findings.
• Audit observation: auditors noted the absence of mandatory internal audit systems at the company and two subsidiaries in FY26.
• Market share: September 2026 VAHAN registrations of 13,449 units put Ola at about 6.5% share, fifth in the segment.
• Partly paid shares: you owe the call money later; not paying it can mean forfeiture.

Questions to ask before subscribing

1. What will the money be used for, per the Letter of Offer?
2. Is this likely to be the last fund-raise, or could more dilution follow?
3. If you do not subscribe, your percentage holding gets diluted — can you sell your rights entitlement instead?

FAQ

What is the Ola Electric rights issue price?

₹27 per share, payable as ₹16.20 on application and ₹10.80 on a later call.

When is the Ola Electric rights issue open?

From 22 October to 30 October 2026.

Has SEBI found Ola Electric guilty?

No final order has been passed. The offer document records a show-cause notice with allegations, and a settlement application is pending.

What happens if I ignore the rights issue?

Your entitlement lapses and your percentage shareholding is diluted. You may be able to sell the rights entitlement on the exchange during the renunciation window.

Sources

1. Ola Electric board outcome, 7 Oct 2026
2. BSE: Ola Electric rights issue page
3. BusinessLine: rights issue uncovers SEBI scrutiny
4. BusinessLine: shares plunge on rights issue

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This article is for education only. It is not investment advice or a recommendation to buy, sell or hold any security. Facts are from the cited public sources as of 20 October 2026; allegations mentioned are not findings unless a regulator or court has said so.