OET: Ola Electric’s Tech & Manufacturing Arm Driving EV Platforms and Battery Innovation”
Ola Electric Technologies (OET), a wholly owned arm of Ola Electric, has secured board and shareholder approval to raise ₹877.6 crore through the issuance of 87.76 crore preference shares to its fellow subsidiary Ola Cell Technologies (OCT).
According to the company’s stock exchange filing on Tuesday, each preference share will have a face value of ₹10, carrying a 0.001% non-cumulative, non-participating dividend. The issuance will be executed via preferential private placement in one or more tranches.
Strengthening Vertical Integration
OET serves as Ola Electric’s manufacturing and technology backbone, handling vehicle platforms and advanced battery technology development. OCT, on the other hand, leads the company’s indigenous cell research and large-scale production, a move that reduces dependence on imported cells and mitigates geopolitical risks.
IPO Proceeds and Previous Funding
Ola Electric had earlier raised ₹5,500 crore through its August 2024 IPO, earmarking ₹1,228 crore for OCT to expand its cell manufacturing capacity from 5 GWh to 6.4 GWh. At its first post-listing annual general meeting, shareholders approved a reallocation of IPO proceeds — including ₹1,049 crore for R&D, ₹901 crore for organic growth, ₹395 crore for debt repayment, and ₹248 crore for general corporate purposes.
The latest fundraising aims to strengthen Ola Electric’s financial position and provide operational flexibility across its subsidiaries as it scales up its EV ecosystem.
Indigenous Cell Production Milestone
In its June quarter results, Ola Electric announced it had begun producing in-house 4680 lithium-ion cells, which will be deployed in its vehicles starting this Navratri. The transition from supplier-sourced to indigenous cells will continue through FY26, with full utilisation of 1.4 GWh capacity expected by the end of that fiscal year. The company plans to expand capacity to 5 GWh in FY27, part of a ₹2,800 crore project backed by a State Bank of India-led loan consortium.
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Market Position and Incentives
Despite these advancements, Ola Electric’s two-wheeler EV market share slipped recently — from 18.7% in August (19,020 units sold) to 13.2% in September (11,780 units sold).The company has, however, claimed around ₹400 crore under the government’s Production Linked Incentive (PLI) scheme, and received compliance certification for its Gen 3 scooter range, making it eligible for 13–18% sales-linked incentives until 2028.
