Ola Electric’s Board of Directors has approved a Proposed Variation concerning the utilization objects and the time limit for deploying its Initial Public Offering (IPO) proceeds. This necessitates obtaining subsequent shareholder approval. The proposal involves minor shifts in allocated amounts between capital expenditure, R&D, organic growth, and debt repayment. The total utilized amount, excluding issue expenses, remains ₹5,500.00 Crore.
Board Meeting Outcome on Fund Utilization
Ola Electric Mobility Limited announced the outcome of its Board Meeting held on Wednesday, March 18, 2026. The Board has approved a Proposed Variation regarding the terms of utilization and the extension of the time limit for utilizing the proceeds raised through the Initial Public Offering (IPO).
This Proposed Variation is subject to receiving necessary approval from the shareholders.
Details of Proposed Fund Utilization Adjustment
The company provided a detailed breakdown comparing the original objects as stated in the Prospectus (as amended by the First Variation on August 22, 2025) against the current proposal. The total amount of funds raised, as of March 11, 2026, was ₹1,292.86 Crore (excluding issue-related expenses).
Key Adjustments in Allocation (Amounts in ₹ Cr)
While Object 1 (Capital Expenditure for subsidiary OCT’s cell manufacturing expansion) and Object 2 (Repayment of indebtedness) show No change in their structure, significant internal reallocations were proposed out of Object 3:
- Object 3: Investment into R&D and Product Development: The revised allocation is ₹930.00 Crore, down from the original ₹1,505.00 Crore.
- Reallocation from Object 3: A total of ₹575.00 Crore was moved from Object 3, allocated as follows:
- To Object 4 (Organic Growth): ₹100 Crore, increasing its revised total to ₹1,300.64 Crore.
- To Object 6 (Debt Repayment): ₹475 Crore, increasing its revised total to ₹870.00 Crore.
- Object 4: Expenditure for Organic Growth Initiatives: Revised to ₹1,300.64 Crore (including the ₹100 Cr inflow).
- Object 5: General Corporate Purposes: Remained unchanged at ₹1,374.42 Crore.
Utilization Timeline and Totals
The revised timeline for utilization for Objects 4, 5, and 6 has been set for Fiscal Year 2026-27.
The Total Amount (excluding issue related expenses) remains ₹5,275.06 Crore, and the total including issue expenses is ₹5,500.00 Crore.
Next Steps
The company will proceed with necessary disclosures upon issuing the notice to seek shareholder approval for this Proposed Variation. The Board meeting commenced at 05:00 PM (IST) and concluded at 05:30 PM (IST) on March 18, 2026.
Source: BSE
