Shares of Ola Electric Mobility fell nearly 4 per cent in intraday trading after the electric-scooter maker launched a qualified institutional placement (QIP) to raise capital.
The stock opened down 3 per cent at ₹38.50 on the National Stock Exchange and touched a low of ₹38.08 before trimming some losses.
Ola Electric has been among the market’s weaker performers over last year. The stock declined 27 per cent during the period, compared with a 5.5 per cent drop in the Nifty 50, and traded roughly 50 per cent below its ₹76 initial public offering (IPO) price. The fundraising move followed the company’s decision to launch a QIP on Monday at a floor price of ₹37.74 a share.
“The issue price will be determined by the firm in consultation with the book running lead managers appointed in relation to the Issue,” said the company.
The capital raise is part of a broader plan approved by the board in October to raise as much as ₹1,500 crore through securities issuance. Ola Electric recently posted a consolidated net loss of ₹500 crore for the quarter ended March 31, narrowing from ₹870 crore a year earlier, a decline of 42.5 per cent year-on-year (Y-o-Y).
Revenue from operations fell 56.6 per cent to ₹265 crore in the March quarter, down from ₹611 crore a year earlier.
Compared with the December quarter, revenue declined 43.6 per cent from ₹470 crore. Total income dropped 58.2 per cent to ₹304 crore from ₹728 crore in the year-ago period.
