Ola Electric Calls Board Meeting to Plan First Fundraising via NCDs

ola Electric, the electric vehicle company, will held a board meeting on Thursday to decide on raising funding by issuing non-convertible debentures (NCDs) or other securities in one or more rounds, according to a stock exchange filing.

This comes just weeks after credit rating agency ICRA lowered the company’s rating due to low sales and ongoing cash losses. 

ICRA had said Ola Electric would likely need more funding in the next 12–24 months as its current cash reserves start to decrease.

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As per ICRA’s May 1 report, a large part of Ola Electric’s spending challenges are linked to building its battery cell manufacturing unit. The agency pointed out that the project still faces risks related to timely completion, demand, supply chain issues, and outdated technology.

Ola Electric, which went public in August last year, had planned to spend ₹1,227.64 crore from its IPO funds to grow its cell manufacturing. However, its stock has dropped 39% this year due to regulatory issues, falling market share, and doubts about profitability. 

The government has also questioned the company over mismatched sales data and missing trade certificates, especially for its February sales figures.

Recently, Ola Electric has been competing with established companies like Bajaj Auto and TVS Motor for market share. In April, TVS Motor took the lead as the top electric two-wheeler maker in India, with Ola Electric coming in second and Bajaj Auto third.

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