EV-maker Ola Electric on Friday said its shareholders have approved a special resolution to allow the company to vary the objects of its initial public offering (IPO) and extend the timeline for the utilisation of these proceeds.
In the scrutiniser’s report filed with stock exchanges, it showed that 99.09% of the votes cast by company shareholders were in favour of the resolution, with only 0.9% voting against it.
The approval would indicate that the Bhavish Aggarwal-led firm can now redirect proceeds from its public offering to more urgent or strategically important areas.
In its IPO filings, the company had intended to use the Rs 1,227.64 crore towards expanding its cell manufacturing capacity, Rs 800 crore for debt repayment, Rs 1,600 crore for research and development, and Rs 1,297.42 crore towards general corporate purposes, among other uses.
.thumbnailWrapper{
width:6.62rem !important;
}
.alsoReadTitleImage{
min-width: 81px !important;
min-height: 81px !important;
}
.alsoReadMainTitleText{
font-size: 14px !important;
line-height: 20px !important;
}
.alsoReadHeadText{
font-size: 24px !important;
line-height: 20px !important;
}
}
In July, Ola Electric had informed stock exchanges that it had utilised the entirety of the amount earmarked for the expansion of its cell manufacturing plant’s capacity. However, the firm added that expanding its cell production capacity above 5 GWh may not be the optimal allocation given the slow growth in the EV segment. The company was previously aiming to reach 20 GWh capacity by 2026. It has planned to limit the capacity to 5 GWh till FY29.
The SoftBank-backed company listed on public bourses in August last year and saw proceeds worth Rs 5,500 crore from the IPO. The company has utilised Rs 2,900.64 so far from the offering.
During the board meeting, shareholders also approved the company’s consolidated financial statements for the year ended March 31, 2025, as well as the reappointment of Krishnamurthy Venugopala Tenneti as its director. It also approved the appointment of BMP & Co LLP as secretarial auditors.
(Disclaimer: Shradha Sharma, Founder and CEO of YourStory, is an independent director in Ola Electric.)
Edited by Jyoti Narayan
