Shares of Ola Electric Mobility Ltd. experienced a significant rebound on Tuesday, climbing 13.83% to reach a high of Rs 34.07. This surge comes as the company's rights issue remains open, seeking to raise substantial capital.
The rights issue, which commenced on October 22, is set to conclude on October 30. Ola Electric is offering up to 370.27 million rights equity shares at Rs 27 per share, inclusive of a Rs 17 premium. This initiative aims to raise approximately Rs 999.74 crore. Eligible shareholders on the record date of October 13, 2026, are offered two rights equity shares for every 25 equity shares held. Investors are required to pay Rs 16.20 per rights equity share upon application.
Expert Insights on Ola Electric's Performance
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted that the stock is attracting buying interest at lower levels, influenced by elevated crude oil prices and the ongoing rights issue. Bathini suggested the counter is suitable for investors with a high-risk appetite, emphasizing the importance of monitoring the company's earnings and revenue in upcoming quarters.
Conversely, Ravi Singh, Chief Research Officer at Master Capital Services, highlighted Ola Electric's Q1 FY27 revenue of Rs 455 crore but pointed to continued losses, raising concerns about its path to profitability. Singh advised caution for investors, suggesting they avoid fresh positions and that existing shareholders might consider the current rally as an exit opportunity.
From a technical perspective, AR Ramachandran, a Sebi-registered research analyst at Tips2trades, indicated that Ola Electric's stock shows bullish signs on daily charts, with strong support at Rs 29.82. A daily close above the Rs 33 resistance level could lead to further upside towards Rs 36.2 in the near term.
Rights Issue and Investor Activity
NSE bulk-deal data reveals that SoftBank's investment vehicle, SVF II Ostrich (DE) LLC, cumulatively sold 3.58 crore rights entitlements (REs) through October 26. As of September 2026, SVF II Ostrich held an 11.70% stake in Ola Electric, while founder Bhavish Aggarwal held 26.52%.
Motilal Oswal Financial Services and Calliope Capital Advisors applied for a combined 2.39 crore shares on the opening day of the rights issue. These rights entitlements were transferred by Ola Electric promoter-group entities, ANI Technologies and Indus Trust. Prior to this, Ola Electric had raised approximately Rs 780 crore through a qualified institutional placement (QIP) in June 2026.