Shares of Ola Electric Mobility Limited dropped significantly on 2 June following the launch of its institutional share sale. The stock hit an intraday low of Rs 38.08 on the National Stock Exchange (NSE) during early morning market activity. This drop represented a sharp 3.66% fall from the previous close.

The electric two-wheeler maker opened its Qualified Institutional Placement on 1 June 2026 to bring in up to Rs 500 crore from qualified buyers. The issue opened on Monday. 

This fundraising method allows listed companies to sell shares directly to large institutional investors to generate capital quickly. The company fixed the floor price at Rs 37.74 per share.

The issue follows approvals granted by the board on 25 October 2025 and a shareholder resolution passed on 27 November 2025. 

In an exchange filing, the firm noted that its trading window will remain closed until 48 hours after the price determination. Motilal Oswal Investment Advisors Limited is handling the entire transaction as the sole book-running lead manager.

Both the company and its core promoters are subject to a strict 60-day lock-up period after the placement closes. According to official disclosures, the firm plans to utilise these proceeds for debt repayment along with funding organic growth initiatives.

The capital push comes as the company reports improving registration trends during the current quarter. 

Data from the official VAHAN vehicle registration portal indicates that sales have already touched 22,600 units in the current quarter, which completely surpasses the total of 22,221 vehicles registered during the entire fourth quarter of the financial year 2026.

The improvement in registrations follows a challenging quarter in which the electric vehicle major reported a net loss of Rs 500 crore. Looking ahead, the firm guided for total orders to hit between 40,000 and 45,000 units alongside a consolidated revenue target of up to Rs 550 crore by the end of June.

Market pressure eased slightly during afternoon trading. At 13:06 pm, Ola Electric was trading at Rs 39.10 on the NSE, down 1.09% from its previous close.

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