Shares of Ola Electric Mobility Ltd. experienced a significant surge, rising over 6% to reach their highest level in 12 weeks. The electric two-wheeler manufacturer's stock closed at Rs 44.50 following the announcement that its board will convene to discuss a proposed rights issue of equity shares.
The company informed stock exchanges that it is actively seeking board approval for this proposed rights issue. The primary objective of the rights issue is to facilitate broader participation from all eligible shareholders, including retail investors, institutional entities, and the promoter group, in accordance with applicable regulations. The board meeting to deliberate on this crucial proposal is scheduled for September 28.
Previous Fundraising Success
This latest financial maneuver follows a successful qualified institutions placement (QIP) completed by Ola Electric in early June this year. The company raised approximately Rs 780 crore through the QIP, surpassing its initial target of Rs 500 crore. A regulatory filing confirmed the allotment of 21.76 crore equity shares to eligible qualified institutional buyers (QIBs) at an issue price of Rs 35.86 per share.
The QIP attracted considerable interest from several prominent institutional investors. Participants included global financial giants like Goldman Sachs and BNP Climate Fund, alongside leading Indian mutual funds such as Motilal Oswal Mutual Fund, Mirae Asset Mutual Fund, Kotak Mahindra Mutual Fund, JM Financial Mutual Fund, and Baroda BNP Paribas Mutual Fund.
Analyst Outlook
Market observers are closely watching Ola Electric's performance. Laxmikant Shukla, Technical Research Analyst at YES Securities, has reportedly maintained a 'buy' call on Ola Electric stock, setting a target price of Rs 50 with a suggested stop loss at Rs 35. Shukla noted that the stock has convincingly broken above its 100-day Simple Moving Average (SMA), indicating a potential for continued upward momentum.