Stock in Focus: Electric vehicle maker Ola Electric Mobility Ltd said on Saturday, October 25 that its board of directors has approved a proposal to raise funds up to Rs 1,500 crore.
The Bhavish Aggarwal-owned company informed the exchange that the amount could be raised through equity shares or convertible securities (such as warrants) or other instruments. For this, public offer, rights issue, qualified institutional placement (QIP), private placement or any other method can be used.
Shareholders’ approval required
This plan to raise funds will depend on the approval of the company’s shareholders. Shareholders will vote to approve or reject the plan. The company has not yet clarified what the funds raised will be used for.
However, recently Ola Electric had announced that it will not be limited to just the mobility market and will also enter the clean energy sector. Under this, Ola Electric launched Ola Shakti on October 16, which is a portable battery energy storage system (BESS).
Share price of Ola Electric
Shares of Ola Electric Mobility closed at Rs 52.92 on Friday (October 24), down 1.43%. The stock is down 5.57% in the last 1 month. At the same time, it has given a negative return of 31.53% in 1 year. Its IPO came at Rs 76. This is also Rs 30.35 below the IPO price.
Brokerage opinion on Ola Electric
Veteran brokerage firm Goldman Sachs has approved Ola Electric Mobility Ltd. Its 12-month share price target has been reduced to ₹62, earlier it was ₹72. The company’s electric two-wheeler market share has declined from 20% to less than 15% in the last six months.
Hero MotoCorp has now become the fourth largest EV seller in India, surpassing Ola Electric. Bajaj Auto, TVS Motor and Ather Energy are the other major players.
However, Goldman Sachs has maintained ‘buy’ rating on Ola Electric. He says investors will now see whether the company’s foray into the lithium-ion battery energy storage market will be as successful as it experienced in its electric two-wheeler business.
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