Bengaluru, India , Ola Electric, one of India’s leading electric vehicle (EV) manufacturers, is preparing to deliberate on a major fundraising proposal during its upcoming board meeting on Saturday, October 25. The company revealed in a stock exchange filing that it will evaluate issuing new equity shares or other eligible securities to strengthen its financial position.

According to The Economic Times, Ola Electric is considering a range of funding mechanisms — including private placement, Qualified Institutional Placement (QIP), and preferential issue — all of which will require prior regulatory and shareholder approvals. This follows over a year after Ola Electric’s initial public offering (IPO) in August 2024, where it successfully raised ₹5,500 crore through a fresh equity issue.

Earlier in May 2025, the company’s board had authorized a plan to raise ₹1,700 crore through non-convertible debentures and other debt instruments, its first post-IPO fundraising initiative. Despite this, a shareholder communication for Q1 FY2025 indicated that Ola Electric was “well funded for this year and the next,” with ₹3,197 crore in cash reserves as of June 2025.

However, recent months have proven challenging. The company’s stock has plunged more than 40% from its IPO price of ₹76, closing at ₹53.67 per share on the Bombay Stock Exchange (BSE) on Thursday.

In a bid to expand beyond its vehicle segment, Ola Electric recently launched Ola Shakti, a battery energy storage system introduced on October 16. The product represents part of the company’s larger strategy to diversify into clean-energy infrastructure and strengthen its sustainability portfolio.

Despite these diversification efforts, Ola Electric remains under intense scrutiny due to several operational and regulatory challenges. Reports have surfaced regarding discrepancies in sales data, consumer complaints about vehicle quality, and missing trade certificates across certain retail outlets. Meanwhile, the company’s market share has declined from 18.7% in August to 13.2%, sliding from first to fourth position in India’s fast-growing EV two-wheeler market, according to data cited by ET.

The company’s internal troubles deepened further with the tragic death of K Aravind, a 38-year-old Homologation Engineer employed since 2022. Aravind’s 28-page handwritten note, discovered in his Koramangala residence, reportedly accused senior officials of mental harassment and non-payment of salary and allowances. Mint reported that he allegedly consumed poison. Ola Electric confirmed that a First Information Report (FIR) had been registered and stated that the company is contesting the case in the Karnataka High Court.

While the forthcoming board meeting is expected to center on capital infusion and growth stabilization, analysts suggest the company must also prioritize governance, transparency, and employee welfare to regain investor confidence and restore its market leadership in the competitive EV sector.