Ola Electric Rights Issue: There is big news for the shareholders of Ola Electric. The electric two-wheeler manufacturing company has fixed the price of its proposed rights issue at Rs 27 per share. This price is about 26 percent cheaper than the current market price of the company. According to the company, there is a plan to raise about Rs 1,000 crore through this rights issue. Let us tell you that after the news of rights issue, investors may keep an eye on the shares of Ola Electric on Thursday. Today on Wednesday, the company’s shares closed at Rs 36.30 on BSE.
The company gave information
In the information given to the stock market, the company said that the rights issue amount will have to be paid in two phases. That means shareholders will not have to pay the entire amount at once. At the time of application, 60 percent of the share price will have to be paid. The remaining amount will have to be deposited later on the due date. The company says that this will give more time to the shareholders for payment.
The company is also raising Rs 1,500 crore
Let us tell you that Ola Electric has already got approval to raise up to Rs 1,500 crore. Out of this, the company had raised Rs 780 crore through Qualified Institutional Placement i.e. QIP in June. After this, the company’s board of directors approved the rights issue on September 28. The draft letter of the proposed issue was also filed on the same day. According to the report, the company’s Chairman and Managing Director (MD) Bhavish Aggarwal can invest in the rights issue as per his full eligibility. The company had recently informed that Agarwal has pledged 4.32 per cent of his stake. According to the company, this has been done only to raise money for the rights issue and these shares have not been sold. The total stake of the promoter group in Ola Electric is about 32.97 percent.
What is the company’s plan?
The company can use the proceeds from this rights issue to reduce its debt. According to sources, this can help in strengthening the cash position of the company. Also, the company may have less need to raise additional money immediately in the times to come. The company has said that the record date and other important information related to the rights issue will be released later. This information will be given to the shareholders as per the prescribed rules.
Source: www.livehindustan.com
