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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The promoter has used pledged shares to help fund his Rs 265 crore commitment to Ola Electric’s rights issue. The high cost of borrowing and the company’s weakening business leave little room for error.
Electric vehicle maker Ola Electric’s Rs 1,000 crore rights issue was fully subscribed two days before its 30 October closing date. Founder Bhavish Aggarwal, who owns a 26.52% stake, fully participated in the issue, committing Rs 265.14 crore.
To fund his participation, Aggarwal pledged 20 crore Ola Electric shares, equivalent to about 4.32% of the company’s equity and 16.3% of his personal stake, as collateral for debt raised by Krutrim Data Centre, a promoter-group entity. On 30 September, Krutrim allotted 1,750 non-convertible debentures (NCDs) worth Rs 10 lakh each, raising Rs 175 crore. Of this, Rs 150 crore came from …
A proposed Rs 12,000 crore incentive shifts the focus to components after the first scheme fell short. But raw material dependence, gaps in technology and China’s dominance remain.
The startup isn’t sure where its future lies—in electric motorcycles or the more recently announced electric scooter? Unsurprisingly, none of the products have amounted to anything so far.
The EV maker is turning to gig-worker rentals to absorb its scooter output. But questions on cost, competition and execution make its latest pivot uncertain.
