Home / Business and Economy / Ola Electric Subsidiary Raises ₹877.6 Crore to Boost Cell Manufacturing
Ola Electric Subsidiary Raises ₹877.6 Crore to Boost Cell Manufacturing
1 Oct
Summary
- Ola Electric subsidiary OET raises ₹877.6 crore to expand cell manufacturing
- OET oversees Ola Electric's vehicle platforms and battery technology
- Ola Electric reallocates IPO funds for R&D, growth, debt repayment
As of October 1, 2025, Ola Electric Technologies (OET), a wholly owned subsidiary of Ola Electric, has received board and shareholder approval to raise up to ₹877.6 crore through the issuance of preference shares. This capital raise aims to bolster OET's manufacturing and technology capabilities, including vehicle platforms and battery technology.
The funds will be raised by issuing 87.76 crore preference shares to another Ola Electric subsidiary, Ola Cell Technologies (OCT), which focuses on indigenous cell research, development, and large-scale manufacturing. This move is expected to support Ola Electric's vertical integration and reduce reliance on imported cells, thereby mitigating geopolitical risks.
In addition, Ola Electric has recently reallocated the ₹5,500 crore it raised in its August 2024 IPO. The company has earmarked ₹1,049 crore for R&D, ₹901 crore for organic growth, ₹395 crore for debt repayment, and ₹248 crore for general corporate purposes.
Furthermore, Ola Electric has begun producing in-house 4680 lithium-ion cells, which will be deployed in its vehicles starting this Navratri. The company aims to transition fully from supplier-sourced to indigenous cells by the end of fiscal year 2026, with a planned expansion to 5 GWh of cell manufacturing capacity by fiscal year 2027.
