Ola Electric To Invest Rs 199 Cr In Battery Manufacturing Arm

ola Electric’s board has approved a Rs 199 crore investment in its battery manufacturing subsidiary, Ola Cell Technologies (OCT).

In an exchange filing, Ola Electric said it will buy 19.9 crore compulsory convertible preference shares (CCPS) in OCT at Rs 10 each. The all-cash deal is expected to be completed by April 30, 2025.

Additionally, the board has approved converting Rs 61.2 crore of outstanding payables owed by OCT into 6.12 crore CCPS.

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The Bhavish Aggarwal-led ev maker company plans to use the funds to meet OCT’s business needs.                                                            

“The conversion of the outstanding payables into compulsorily convertible preference shares by OCT to the company is part of its overall strategic decision,” the filing added. 

The Rs 200 crore investment in OCT comes about a month after Ola Electric received a notice from the heavy industries ministry for not meeting its targets under the Rs 18,100 crore PLI scheme for advanced battery cells.

This also aligns with Ola Electric’s recent announcement that it will start commercial production of lithium-ion cells in Q1 FY26.

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Founded in 2022, Ola Cell Technologies (OCT) manufactures, assembles, exports and sells batteries and cells.

Ola Electric is facing regulatory scrutiny from multiple agencies, including the consumer watchdog CCPA, which is investigating complaints about issues with its electric two-wheelers and services.

Earlier, the Ministry of Heavy Industries (MHI) asked Ola Electric to explain an alleged discrepancy. As part of the probe, Maharashtra RTO officials inspected several Ola showrooms across the state, including one in Pune, to check if vehicles were sold with valid trade certificates and proper paperwork.

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