Ola Electric Channels ₹127.6 Crore Into Subsidiary via Preference Shares, Fourth Tranche Under IPO-Use Reshuffle

Ola Electric Mobility has moved ₹127.64 crore into a key group company via a fresh issue of preference shares, marking the fourth tranche of capital deployment under its revised plan for using initial public offering (IPO) proceeds. 

In a filing with the NSE and BSE, the company said its material subsidiary, Ola Electric Technologies Pvt Ltd (OET), has allotted 12.76 crore 0.001 percent Series A optionally convertible redeemable preference shares (OCRPS) at ₹10 each to fellow subsidiary Ola Cell Technologies Pvt Ltd (OCT) on a private placement basis. 

These OCRPSs are non-cumulative and non-participating, which means they carry a very low coupon and do not share in extra profits like ordinary equity, but can potentially be converted into shares later or redeemed as per agreed terms. The company has clearly stated that details of conversion will be disclosed at a later stage, leaving the exact timetable and conditions open for now. 

The latest allotment follows shareholder approval in August 2025 to change the objects and terms of utilisation of IPO proceeds, and comes “in continuation” of earlier intimations dated 7 October, 30 October and 23 December 2025. Ola Electric has not repeated all numbers in this filing, but those earlier disclosures also related to tranches under the same revised utilisation plan, indicating a phased, structured funding of group entities rather than a one-off transfer. 

At ₹127.64 crore, this fourth tranche is modest compared with Ola Electric’s market capitalisation of around Rs 15,950 crore, but it underlines the importance of OCT within the group’s electric vehicle and battery roadmap. The funds are effectively being recycled from the listed company’s ecosystem into a specialised arm that focuses on cell technologies, a crucial piece of the EV cost and supply-chain puzzle. 

For public investors, the other key lens is the Ola Electric share price. The company’s IPO was priced at ₹72–76 per share, with an issue price of ₹76, and it listed around that level in August 2024. After an initially strong debut, the stock has since cooled. Recent data shows Ola Electric trading around ₹35–38 per share in April 2026, meaning the stock is currently well below its IPO price and also far off its 52-week high of about ₹71.

That means early IPO investors are sitting on notional losses for now, even as the company continues to push ahead with internal capital allocation moves such as this preference share route to support its battery and technology subsidiaries.