Ola electric subsidiary allots Rs 127.64 crore preference shares to group company

Ola Electric announced that its wholly-owned subsidiary, Ola Electric Technologies (OET), has approved the allotment of 12.76 crore Series A optionally convertible redeemable preference shares (OCRPS) worth Rs 127.64 crore to Ola Cell Technologies (OCT), another wholly-owned subsidiary. This move follows earlier disclosures regarding changes in the utilization of IPO proceeds, which shareholders approved at the company’s annual general meeting on August 22, 2025.

Key Highlights

• Ola Electric subsidiary allotted 12.76 crore Series Preference shares worth Rs 127.64 crore
• All shares were subscribed by Ola Cell Technologies through private placement
• Shareholder approval for IPO fund utilisation changes was granted on August 22, 2025

Details of Share Allotment

The board of OET approved the allotment during a meeting held on April 27. The entire issue was subscribed to by OCT through a private placement. Ola Electric confirmed this in a stock exchange filing. The company stated that this allotment is part of its ongoing strategy to manage IPO proceeds as previously communicated to stakeholders.

Ola Electric has continued to update shareholders and the public about its financial decisions. The company maintains transparency by disclosing such transactions and ensuring compliance with shareholder approvals.

Background and Shareholder Approval

The decision to allot these preference shares is linked to earlier resolutions regarding the use of IPO funds. Shareholders gave their approval for variations in the utilization of these funds at the annual general meeting on August 22, 2025. Ola Electric has reiterated that this step aligns with its previously outlined financial plans.

The allotment of Rs 127.64 crore in preference shares represents a significant internal transaction between Ola Electric’s subsidiaries. The company continues to focus on its growth strategy while adhering to regulatory and shareholder requirements.

Timeline and Regulatory Compliance

The board meeting that approved the allotment took place on April 27, 2026. Ola Electric disclosed the transaction in a filing on April 28, 2026. The company’s actions demonstrate its commitment to regulatory compliance and transparent communication with investors.

Also Read: Ola Electric Roadster X crosses 50% EV motorcycle market share in key states

CarBike 360 Says

This strategic allotment reflects Ola Electric’s ongoing efforts to streamline capital within its group structure while supporting long-term expansion plans. As the EV market in India becomes increasingly competitive, such financial moves could play a crucial role in strengthening liquidity and funding future innovations. It also signals confidence in the company’s growth trajectory and internal alignment.