IPO

Ola Electric reallocates IPO funds, weighs stake sale

By Startup Enthusiast · 19 March 2026

What they do

Board reallocated ₹575 Cr from R&D to debt repayment and growth

Company seeks ₹2,000 Cr from minority stake sale in cell unit

Shares down over 30% year-to-date after 55% decline in 2025

The board approved reallocating ₹575 Cr from research and development to other uses.
Of the reallocated funds, ₹100 Cr will go to organic growth initiatives.
The remaining ₹475 Cr is proposed for debt repayment or prepayment.
The R&D allocation was cut from ₹1,505 Cr to ₹930 Cr.
The debt repayment allocation rose from ₹395 Cr to ₹870 Cr.
Unutilised IPO proceeds stood at ₹1,295.63 Cr as of March 11, 2026.
This is the second major IPO proceeds revision in under a year.
The company is also seeking up to ₹2,000 Cr from a minority stake sale in Ola Cell Technologies.

The company's shares have fallen over 30% year-to-date, after a 55% decline in 2025.
Revenue plunged 55% year-on-year to ₹470 Cr in Q3 FY26.
Net loss narrowed 14% year-on-year to ₹487 Cr in Q3 FY26.
Operating cash flows were negative at ₹866 Cr over nine months.
The earlier August 2025 revision had already trimmed R&D and added a debt repayment component.

Ola Electric sells electric scooters and motorcycles in India.
Its product line includes the Ola S1 series, Roadster series, Ola Shakti, and Ola Gig.
It offers home energy storage solutions using LFP cells.
The company has 590 service centres and 1 lakh third-party mechanics.
It uses AI-powered service with proactive maintenance alerts and remote diagnostics.
It provides an EMI calculator with tenure up to 60 months, interest from 6.99%, and zero downpayment.
It has a community of over one million EV owners.
It operates in multiple Indian states and union territories.